Analysis of stockholders' equity - Assignment Example

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Since units sold is 17000 rolls, so sales and cost of goods sold will be calculated on 17000, but the fixed cost incurred shall not be affected by the quantity of units sold, as fixed cost is independent to the amount of units sold
c. 1. From the information given in the…

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Subject: Finance & Accounting
Type: Assignment
Level: High School
Pages: 3 (750 words)
Downloads: 2
Author: slueilwitz

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The cost incurred is included in the selling expenses. The Income Statement shown above depicts that even after incurring the cost og paying commission to its sales staff the company is able to earn profits out of the quantity of units sold. c. 2. If the production of light-gauge aluminum increases in the next year, the unit cost of direct materials, i.e., $4.50, will remain unaffected, as because direct material cost is a variable cost in which the total cost of the materials will increase with the increase in the quantity of production but the per unit cost will remain unaffected.

European Commission. (2003). Cost Statement Guidelines for Research Training Network contracts which started in 2002. Retrieved from:

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