2. The following is a partially completed lower section of a departmental expense allocation for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five departments. Allocate the expenses of the two service departments (advertising and purchasing) to the three operating departments and provide a complete income statement.
Advertising and purchasing department expenses are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
3. Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.
An a. Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per unit or their amounts for the year, as appropriate.
b. Identify the unit variable costs in the format of variable costing, according to your findings in part a
c. Organize a template for variable costing income statements in which the sales volume is a variable. Test your template for 15,000 units sales volume to see if you get the same income as stated above
d. Find the breakeven point and provide the income statement at break-even
e. Provide income statement at sales volume 12,000, 14,000, 16,000, and 18,000
Please explain your work in detail and provide in-text citations. Include the initial situation and the initial assumptions in your answers. At least 5 references are required among which one should be the textbook as the source of the data.
**I will provide the answer and the calculation, please write me a presentation. For more information on Online Advertising check on this: https://en.wikipedia.org/wiki/Online_advertising
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