Please don't give image based answer.. thanku Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (interms of the Brazilian currency, the real, R) for last month is given below:SalesVariable expensesContribution marginTraceable fixed expenses:AdvertisingSelling and administrativeDepreciationTotal traceable fixed expensesDivisional segment marginCommon fixed expensesOperating incomeSalesTraceable fixed expenses:Total CompanyR 4,675,0002,213,0002,462,000AdvertisingSelling and administrativeDepreciationVariable expenses as a percentage of sales810,000625,000265,0001,700,000762,000408,000R 354,000Traceable fixed expenses:Top management can't understand why the Leather Division has such a low segment margin when its sales are only 30% less thansales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be furthersegmented into product lines. The following information is available on the product lines in the Leather Division:Total traceable fixed expensesCommon fixed expenses:DivisionsClothR 2,750,0001,140,0001,610,000RR480,000390,000133,0001,003,000R 607,000 RLeatherDivisionGarmentsR680,000R 66,000R 48,000R 37,00065%Analysis shows that R94,000 of the Leather Division's selling and administrative expenses are common to the product lines.Required:1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines.0LeatherR 1,925,0001,073,000852,000Leather Division Product LinesHandbagsR425,000R0OR0Garments330,000235,000132,000697,000155,000ShoesR820,000R 85,000R 53,000R 74,0000R50%0ORR179,000R 40,000R 21,00052%Product LineShoes0R0ORHandbags000 2. Management is surprised by the handbag product line's poor showing and would like to have the product line segmented bymarket. The following information is available about the markets in which the handbag line is sold:SalesTraceable fixed expenses:AdvertisingVariable expenses as a percentage of salesTraceable fixed expenses:Common fixed expenses:Total common fixed expensesAll of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which theproduct is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined asmarkets.Increased operating incomeRRO GarmentsO ShoesRGarmentsDomesticR340,000R 30,000HandbagsRHandbag MarketsForeignR 85,000R149,0000Shoes00ROR45%Sales MarketDomestic80%b. Based on the above results, which product line should be chosen?3. Refer to the statement prepared in (1) above. The sales manager wants to run a special promotional campaign on one of the productlines over the next month. A marketing study indicates that such a campaign would increase sales of the Garments product line byR218,000 or sales of the shoes product line by R163,000. The campaign would cost R33,000.a. Compute the increased operating income for these product lines for the expected increased sales.0RORForeign00

A segmented income statement may be prepared under the contribution margin approach or absorption…

2. Management is surprised by the handbag product line's poor showing and would like to have the product line segmented by market. The following information is available about the markets in which the handbag line is sold: Sales Traceable fixed expenses: Advertising Variable expenses as a percentage of sales Handbag Markets Foreign R 85,000 R149,000 80% Domestic R340,000 R 30,000 45% All of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which the product is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined a markets.

2. Management is surprised by the handbag product line's poor showing and would like to have the product line segmented by market. The following information is available about the markets in which the handbag line is sold: Sales Traceable fixed expenses: Advertising Variable expenses as a percentage of sales Handbag Markets Foreign R 85,000 R149,000 80% Domestic R340,000 R 30,000 45% All of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which the product is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined a markets.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 6P: Arctic Software Inc. has two product lines. The income statement for the year ended December 31...

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Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Sales Variable expenses Contribution margin Traceable fixed expenses: Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income Sales Traceable fixed expenses: Total Company R 3,675,000 1,745,500 1,929,500 Traceable fixed expenses: R Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Total traceable fixed expenses 634,000 449,000 233,000 1,316,000 Common fixed expenses: Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines.…
Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Sales Variable expenses Contribution margin. Traceable fixed expenses: Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income Total Company R 4,335,000 2,002,750 2,332,250 Sales Traceable fixed expenses: R 790,000 581,000 257,000 1,628,000 Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales 704,250 404,000 300,250 Divisions Cloth R 2,550,000 1,100,000 1,450,000 Top management can't understand why the Leather Division has such a low segment margin when its sales are only 30% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines. The…
Data for January for Blondi Corporation and its two major business segments, North and South, appear below Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South In addition, common fixed expenses totaled $179.000 and were allocated as follows: $93,000 to the North business segment and $86.000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Multiple Choice $7,000) $172,000 $351,000 $496,000 $660,000 $ 383,000 $ 79,000 s 510,000 $ 291,000 $ 66,000
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Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Total Company $1,035,000 828,000 207,000 136,000 East $ 690,000 579,600 110,400 59,000 $ 51,400 West $ 345,000 248,400 96,600 77,000 $ 19,600 Segment margin Common fixed expenses 71,000 60,000 Net operating income 11,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed ig requirements 2 and 3. Use the same format as shown above. What is Crossfire's net operating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixed expenses to the East and West…
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Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…
Accounting records for The Ralston Company show the following for the most recent fiscal year. Units produced and sold Total revenues and costs Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead Variable marketing and administrative costs Fixed marketing and administrative costs Required: a. Prepare a gross margin Income statement. b. Prepare a contribution margin Income statement. Required A Required B Complete this question by entering your answers in the tabs below. Prepare a gross margin income statement. Gross Margin Income Statement 59,500
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 1,156,250 786,250 370,000 156,000 1. Dollar sales for company to break even 2. Dollar sales for North segment to break even 3. Dollar sales for South segment to break even North $ 925,000 740,000 185,000 78,000 214,000 $ 107,000 68,000 $ 146,000 South $ 231,250 46,250 185,000 78,000 $ 107,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
Munabhai
Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company’s contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Total Company Cloth Leather Sales R 4,590,000 R 2,700,000 R 1,890,000 Variable expenses 2,099,700 1,130,000 969,700 Contribution margin 2,490,300 1,570,000 920,300 Traceable fixed expenses: Advertising 785,000 470,000 315,000 Selling and administrative 614,000 380,000 234,000 Depreciation 263,000 132,000 131,000 Total traceable fixed expenses 1,662,000 982,000 680,000 Divisional segment margin 828,300 R 588,000 R 240,300 Common fixed expenses 407,000 Operating income R 421,300 Top management can’t understand why the Leather Division has such a low segment margin when its sales are only 30% less than…
Complete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $enter the sales revenue amount in dollars $504,696 $enter the sales revenue amount in dollars $671,472 Variable expenses 236,284 enter the variable expenses amount in dollars 123,704 enter the variable expenses amount in dollars Contribution margin 150,052 156,624 enter the contribution margin in dollars 490,336 Fixed expenses enter the fixed expenses amount in dollars 87,320 138,084 enter the fixed expenses amount in dollars Operating income 20,502 enter the operating income amount in dollars enter the operating income amount in dollars enter the operating income amount in dollars Income taxes enter the income tax amount in dollars 20,791 20,278 63,805 Net income $14,351 $enter the net income amount in dollars $60,834 $191,415