Cosgrove Company, Inc. is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below: Identify the fixed and variable costs...


Cosgrove Company, Inc. is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below:



  1.   Identify the fixed and variable costs associated with Cosgrove.

  2.   Calculate the average costs per month.





























































































Cosgrove Company


Traditional Format Income Statement


For the Three Months Ended June 30





April



May



June



Sales in Units



3,000



3,750



4,500











Sales Revenue



420,000



525,000



630,000



Cost of Goods Sold



168,000



210,000



252,000



Gross Margin



252,000



315,000



378,000



Selling and Administrative Expenses:









     Shipping Expense



44,000



50,000



56,000



     Advertising Expense



70,000



70,000



70,000



     Salaries and Commissions



107,000



125,000



143,000



     Insurance Expense



9,000



9,000



9,000



     Depreciation Expense



42,000



42,000



42,000



Total Selling and Administrative Expenses



272,000



296,000



320,000



Net Operating Income (Loss)



$(20,000)



$19,000



$58,000




Jun 09, 2022
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