3A. Going Under Pvt. Ltd. provides outsourcing services for three areas: payroll, general ledger (GL), and tax compliance. The company is currently contemplating eliminating the GL area because it is showing a pre-tax loss. An annual Income statement follows (in 5000): SALES VARIABLE MANUFACTURING COSTS VARIABLE NON-MANUFACTURING COSTS DEPARTMENT FIXED COSTS (AVOIDABLE) ALLOCATED FIXED COSTS (UNAVOIDABLE) OPERATING PROFITS PAYROLL GL TAX $5,500 $3,900 $4,390 ($1,678) ($1,245) ($1,597) ($599) ($1,400) ($486) ($1,399) ($1,300) ($1,570) ($378) ($500) ($299) $1,446 ($545) $438 If corporate management drops the GL area, what impact would this have on total operating profit? (Give actual dollar impact on profit; "yes/no" answers are not acceptable)

3A. Going Under Pvt. Ltd. provides outsourcing services for three areas: payroll, general ledger (GL), and tax compliance. The company is currently contemplating eliminating the GL area because it is showing a pre-tax loss. An annual Income statement follows (in 5000): SALES VARIABLE MANUFACTURING COSTS VARIABLE NON-MANUFACTURING COSTS DEPARTMENT FIXED COSTS (AVOIDABLE) ALLOCATED FIXED COSTS (UNAVOIDABLE) OPERATING PROFITS PAYROLL GL TAX $5,500 $3,900 $4,390 ($1,678) ($1,245) ($1,597) ($599) ($1,400) ($486) ($1,399) ($1,300) ($1,570) ($378) ($500) ($299) $1,446 ($545) $438 If corporate management drops the GL area, what impact would this have on total operating profit? (Give actual dollar impact on profit; "yes/no" answers are not acceptable)

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

Fill in the missing data for each of the following independent cases. (Ignore income taxes.) Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. 1. 2. 3. 4. Sales Revenue Variable Expenses 225,000 50,000 $ 98,000 145,000 18,000 Total Contribution Margin 48,000 290,000 Fixed Expenses 78,400 Net Income 200,000 20,800 Break-Even Sales Revenue $ 98,000 225,000
7. Vivera Corp. has two divisions, the Daleta division and the Alpine division. The Daleta divisionhas a sales of P620,000, variable expenses of P350,000 and traceable fixed expenses ofP229,200. The total amount of common fixed costs not traceable to individual divisions isP122,000. What is the company’s net operating income? 8. Basaha Co.’s accounts receivable were P430,000 at the beginning and P480,000 at theend of the year. Cash sales were P175,000 for the year. The accounts receivable turnoverwas 5. How much is the company’s total sales for the year? 9. Gurapa uses an imputed interest rate of 13% in the calculation of residual income.Division Tiffey, which is part of Gurapa had invested capital of P1,200,000 and an ROIof 16%. On the basis of this information, what was Tiffey division residual income? Solution pls 7 8 9
Kindly provide the following requirements.
Help please
(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.
E6.14 (LO 4), AN The single-column CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co.Sales $500,000 $500,000Variable costs 240,000 50,000Contribution margin 260,000 450,000Fixed costs 160,000 350,000Net income $100,000 $100,000Instructions Compute the degree of operating leverage for each company and interpret your results.Assuming that sales revenue increases by 10%, restate the single-column CVP income statement from above for each company.Discuss how the cost structure of these two companies affects their operating leverage and profitability.Compute degree of operating leverage and evaluate impact of alternative cost structures on net income and margin of safety.
Please do not give solution in image format thanku
The following revenue-based profit functions are for X Company's only two products, A and B, last year: Product A: PA 0.26RA- $32,000 Product B: P0.43R- $63,000 Revenue from sales of A was $220,000, and revenue from sales of of B was $150,000. Assuming there is no change in the product mix, what must total revenue be next year in order for X Company to break even [round the weighted average contribution margin rate to two decimal places? OA: $287,879 OB: $336,818 C: $394,077 OD: $461,070 OE: $539,452 OF: $631,159
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 Department P $ 82,000 $ 44,000 $ 78,000 $ 65,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T 17,300 45,400 57,800 21,600 75, 100 67,000 $ 6,900 $ (23,000) Decision 18,000 5,700 23,700 $ 54,300 21,500 54,300 75,800 $ (10,800) Department T $ 43,000 51,300 20,300 71, 600 $ (28,600) Total $ 312,000 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? 153,500 159, 700 313, 200 $ (1,200)
Comfirm