Amasarcas Inc., is a wholesaler that distributes a singleproduct. The company’s revenues and expenses for the last twomonths are given below:
Sales in units | 5,000 units | 6,000 units |
| | |
Sales revenue | $500,000 | $600,000 |
Expense A | 10,000 | 10,000 |
Expense B | 125,000 | 150,000 |
Expense C | 50,000 | 74,000 |
Expense D | 10,000 | 18,000 |
Expense E | 30,000 | 30,000 |
Net income | $275,000 | $318,000 |
Which of the expenses (A, B, C, D, and E) are variable? How canyou tell?
Which of the expenses (A, B, C, D, and E) are fixed? How can youtell?
Which of the expenses (A, B, C, D, and E) are mixed? How can youtell?
