Assignment:
Part I :
Using the list of expenses in Jim's Auto Body's Income Statement, indicate whether the expense is fixed, variable, or mixed.
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Jim's Auto Body
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Income Statement
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As of April 30, 2017
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Revenues:
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Service Revenue
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36,000
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Total Revenue
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36,000
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Expenses:
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Salary Expense
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4,700
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Rent Expense
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2,000
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Utility Expense
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900
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Depreciation Expense
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200
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Insurance Expense
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250
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Supply Expense
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510
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Total Expenses
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8,560
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27,440
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Part II :
In a memo to your client, Jim Davis, explain the difference between fixed, variable, and mixed costs. Also define, in your own words, contribution margin, break-even point, and cost-volume profit analysis, including the formulas for all three and how the client can utilize them in his business.
Your memo should be 600 to 700 words in APA format.