47. Redding Company has two divisions with the following segment margins for the current year:Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. Whatis Redding Company's income?OSs0.000O sG00,000S150,000$550,00048. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makesboxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centraincurs the following costs for ane bax:Direct materials $0.35Direct labor$0.60Variable overhead$0.40Fixed averhead $0.13$1.48TolalCentra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from anoutside supplier for $1.80 cach (the same price that Centra receives).Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. Whatwould be the transfer price if Contra transferred boxes to Mantra?O $1.35Cannot be determined trom the information genOS1.48$0.90$1.00

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Answered: 47. Redding Company has two divisions…

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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Fernstrom Corporation has two divisions: East and West. Data from the most recent month appear below: Sales. Variable expenses Traceable fixed expenses Multiple Choice The company's common fixed expenses total $52,140. If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income? $0 East $330,000 $132,000 $140,000 ($235,140) West $144,000 $ 76,320 $ 43,000
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am. 103.
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Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division Net (after-tax) income $641,300 $378,000 Total capital employed 4,200,000 3,282,500 Washington's actual cost of capital was 12%. Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 3. Conceptual Connection: Is each division creating or destroying wealth? Adams Division Jefferson Division 4. Describe generally the types of actions that Washington’s management team could take to increase Jefferson Division’s EVA? Increase the after-tax operating profit that is generated from using the same amount of invested capital. Continue…
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