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Cosgrove, Inc., is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below:
Required:
a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into variable and fixed elements. (Use unit sales as the activity measure.) State the cost formula for each mixed expense.
b. Compute the company's contribution margin for May.
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In addition to the above, do you feel that non-publicly traded companies should have to follow COSO?
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