20. The following is a summarized income statement of CoolKid Co.'s profit center No. 44 for March: Contribution margin Period expenses: Manager's salary Facility depreciation Corporate expense allocation Profit center income Which of the following amounts is most likely subject to the control of the profit center's manager? P70,000 P20,000 8,000 (33,000) P37.000 5,000 A. P70,000 P50,000 C. P37,000 D. P33,000 В. B.

20. The following is a summarized income statement of CoolKid Co.'s profit center No. 44 for March: Contribution margin Period expenses: Manager's salary Facility depreciation Corporate expense allocation Profit center income Which of the following amounts is most likely subject to the control of the profit center's manager? P70,000 P20,000 8,000 (33,000) P37.000 5,000 A. P70,000 P50,000 C. P37,000 D. P33,000 В. B.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears below: 6. Total Company $668,000 Domestic Foreign $321,000 147,660 173,340 134,000 $ 39,340 Sales... Variable expenses. Contribution margin. Traceable fixed expenses. 220,530 447,470 335,000 112,470 $347,000 72,870 274,130 201,000 $ 73,130 Segment margin.. Common fixed expenses.. 73,480 $ 38,990 Net operating income.. The break-even in sales dollars for the company as a whole is closest to: A. $502,579 B. $107,216 C. $436,424 D. $609,794
(a) The current cost Balance Sheet of a company contained the following figures: Current Assets Bank and cash (not included in monetary working capital) 450 Current Liabilities Creditors (Hire purchase) 170 Taxation 210 Proposed dividends Bank overdraft (not included in monetary working capital) Net Assets employed 250 190 3,540 2,680 Shareholders' Funds Long-term Loans Debentures 540 Deferred Liabilities Deferred taxation 320 Required : Calculate the current cost gearing proportion. (b) The facts are exactly the same as (a) above and the current cost adjustments were : Depreciation Fixed asset disposals 870 80 1,050 320 Cost of sales Monetary working capital Required : Calculate the current cost gearing adjustment.
The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom
A corporation has two major business segments--A and B. The following information is given for each division for March. Revenue Variable expenses Traceable fixed expenses Allocated common expenses O $50,000. $60,000. A properly constructed segmented income statement in a contribution format would show that the segment margin of the B business segment is: $106,000. A $690,000 352,000 O $(13,000). 104,000 89,000 B $140,000 34,000 46,000 73,000
Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Total Department A Department B $ 800,000 350,000 450,000 $ 350,000 250,000 Sales $ 450,000 Variable expenses Contribution margin 100,000 100,000 350,000 Fixed expenses 400,000 140,000 260,000 Net operating income (loss) $ 50,000 $ (40,000) $ 90,000 The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department A is discontinued the sales in Department B will drop by 18%. What is the financial advantage (disadvantage) of discontinuing Department A? Multiple Choice $(103,000) $(83,000) $(92,000) $(101,000)
hsd.1
The following information relates to Day Company: Sales Revenue $12 000 000 Contribution Margin $ 4 800 000 Net Income $ 800 00 Days' operating leverage is
The following data are taken from the management accounting reports of Dulcimer Co.: Div. A Div. B Div. C Income from operations $1,900,000 $1,450,000 $1,450,000 Total service department charges 1,700,000 1,050,000 1,100,000 If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that a. Divisions B and C's managers divide the bonus b. Division B's manager is given the bonus c. Division A's manager is given the bonus d. Division C's manager is given the bonus When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing a. budgetary slack b. cushions c. padding d. goal conflict The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Labor…
Sw.
6. Using a responsibility income statement Shown below is the current monthly income statement of Metro Video, by profit centers: Sales Variable Costs Contribution margin Fixed costs traceable to departments Departments responsibility margins Common fixed costs Income from operations METRO VIDEO Income Statement by Profit Centers For the Month Ended April 30, 20 Metro Video Dollars % $560,000 100 (268,800) (48) $291,200 52 (67,200) (12) $224,000 (61,600) $162,400 40 29 Equipment Sales Dollars $280,000 (198,800) $ 81,200 (25,200) Segments $56,000 % 100 71) 29 (09) Video Rentals Dollars $280,000 (70,000) $210,000 (42,000) 20 $168,000 % 100 (25) 75 (15) 60 On the basis of this information, compute the increase in monthly income from operations that may be expected to result from each of the following actions: (a) Spending $5,000 per month in advertising is expected to increase sales in the Equipment Sales Department by 35%. $_ (b) Closing the Equipment Sales Department and allowing 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
Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8Sales $379,000 Variable costs: Manufacturing expense$151,600 Selling expense15,160 Administrative expense60,640(227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense$76,750 Selling expense8,000 Administrative expense10,000(94,750)Operating income $56,850