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QUESTION

Price Categories units sold A B C D E 2,000 1,000 500 400 400 units purchased 3000 1200 1000 1000 1000 Resale Price 4.00 15.00 25.00 45.00 40.00 cost...

                                                                                    Price Categories

units sold              A       B         C       D        E

                             2,000 1,000 500    400    400

units purchased 3000  1200 1000  1000 1000

Resale Price         4.00  15.00  25.00 45.00  40.00

cost                       0.50    5.00  10.00 20.00   20.00

variable operating expenses

shipping per book- 1.50

fixed expenses

internet-5,000

travel-2,000

advertising-1,000

other overhead- 3,000

computations ( USE EXCEL)

prepare a segmented variable costing ( behavorial) income statement for the company in good format.

prepare a second variable costing statement assuming 90% of all books in each category purchased were actually sold.

preparea third variable costing statement assuming that the price is increased by 50% for all fire categories ( use original information)

The owner enjoys the used-book business any suggestions on how to turn this into a full time usiness venture so the owner can quit his other job? Prepare another income statement to support your idea.

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