Question

Company B has provided you the following information: April May June Advertising Expense $20,000 $40,000 $60,000...

Company B has provided you the following information:

April May June
Advertising Expense $20,000 $40,000 $60,000
Utilities Expense $15,000 $25,000 $35,000
Salaries and commissions $50,000 $100,000 $150,000
Insurance Expense $6,000 $11,000 $16,000
Depreciation Expense $10,000 $10,000 $10,000

If Company B sold 1000 units in April, 2000 units in May, and 3000 units in June. Which of the following expenses are mixed?

Select one:

a. Advertising and salaries and commissions

b. Salaries and commissions

c. Only insurance

d. Utilities and insurance

Homework Answers

Answer #1

Solution :-

Mixed expenses are those expenses which are consists of a fixed and variable .

Here

advertising expenses per unit for all the three years are same , so it is a variable expenses

salaries and commision is also variable in nature

so we can see here that insurance and utilities are not variable in nature as well as not fixed in nature so these both expenses are mixed expenses

Hence ,

option no ( d) with utilities and insurance are the correct answer

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