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:
April may june
sales in units 3000 3750 4500
sales revenue 420000 525000 630000
cost of goods sold 168000 210000 252000
gross margin 252000 315000 378000
selling&admin expenses
shipping expenses 44000 50000 56000
advertising 70000 70000 70000
salaries&commis 107000 125000 143000
insurance 9000 9000 9000
depreciation 42000 42000 42000
total selling and admin expenses 272000 296000 320000
net operating income (loss) (20000) 19000 58000
Required:
a.Identify the fixed and variable costs associated with Cosgrove.
b. Calculate the average costs per month.
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