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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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