Identify each expense as fixed-variable,or mixed

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Reference no: EM13516896

Mighty Bright Window Cleaners" monthly income statement at several levels of activity is as follows:

Windows washed

2,000

4,000

6,000

Sales

$3,000

$6,000

$9,000

Cost of goods sold

1,200

2,400

3,600

Gross profit

1,800

3,600

5,400

Operating expenses




Advertising

400

400

400

Salaries and wages

700

900

1,100

Insurance

200

200

200

Postage

400

800

1,200

Total operating expenses

1,700

2,300

2,900

Operating income

$ 100

$1,300

$2,500

Required

  1. Identify each expense as fixed, variable, or mixed.
  2. Prepare a contribution margin income statement based on a volume of 5,000 windows.

Reference no: EM13516896

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