39. Fixed costs of goods sold are allocated to each segment based on the number of employees. Fixed selling and administrative expenses are allocated equally. If Segment B is eliminated, P1,500 of fixed costs of good sold would be eliminated. Assuming Segment B is closed, the effect on operating income would be Following are the operating results of the two segments of Parklin Corporation. Segment A Segment B Total Sales P10,000 P15,000 P25,000 Variable costs of goods sold 4,000 8,500 12,500 Fixed costs of goods sold 1,500 2,500 4,000 Gross margin 4,500 4,000 8,500 Variable selling and administrative 2,000 3,000 5,000 Fixed selling and administrative 1,500 1,500 3,000 Operating income (loss) P 1,000 P (500) P 500 4

39. Fixed costs of goods sold are allocated to each segment based on the number of employees. Fixed selling and administrative expenses are allocated equally. If Segment B is eliminated, P1,500 of fixed costs of good sold would be eliminated. Assuming Segment B is closed, the effect on operating income would be Following are the operating results of the two segments of Parklin Corporation. Segment A Segment B Total Sales P10,000 P15,000 P25,000 Variable costs of goods sold 4,000 8,500 12,500 Fixed costs of goods sold 1,500 2,500 4,000 Gross margin 4,500 4,000 8,500 Variable selling and administrative 2,000 3,000 5,000 Fixed selling and administrative 1,500 1,500 3,000 Operating income (loss) P 1,000 P (500) P 500 4

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Description: 39. Fixed costs of goods sold are allocated to each segment based on thenumber of employees. Fixed selling and administrative expenses areallocated equally. If Segment B is eliminated, P1,500 of fixed costs of goodssold would be eliminated. Assuming

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $ 812,500 552,500 260,000 134,000 126,000 54,000 $ 72,000 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 $ 650,000 520,000 130,000 67,000 $ 63,000 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. South $ 162,500 32,500 130,000 67,000 $ 63,000 Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
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 $ 900,000 630,000 270,000 132,000 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 138,000 57,000 $ 81,000 North $ 675,000 540,000 135,000 66,000 $ 69,000 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. South $ 225,000 90,000 135,000 66,000 $ 69,000 Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.
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A company has four divisions. Division A has sales, variable expenses and traceable fixed expenses of 200,000, 103,000, 33,000, respectively. If the company as a whole has common fixed expenses of 50,000. What is division A’s segment Margin?
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