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Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole di

ID: 2503927 • Letter: M

Question

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow:

     

1,900

3,300

4,950

127,300

221,100

331,650

214,700

372,900

559,350

41,900

41,900

41,900

274,400

347,200

433,000

A$ (59,700

A$ 25,700

A$ 126,350

     

(Note: Morrisey & Brown, Ltd.'s Australian-formatted income statement has been recast in the format common in the United States. The Australian dollar is denoted here by A$.)



     

      

    

Redo the company's income statement at the 4,950-unit level of activity using the contribution format.(Input all amounts as positive values except net operating loss which should be indicated by a minus sign. Omit the "A$" sign in your response.)

  

  

A$  

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow:

Explanation / Answer









a)      

Shipping Expenses
Salaries And commission
  Variable cost                                      12 per unit                                                40 per unit   Fixed cost                              19,700
                                      34,400
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