Please check the answer twice and add explanation please 7)The results from one of your divisions for 2020 is given below.units:28,500Rev722,052,000DM30855,000DL10285,000VarMOH4114,000VarSelling8228,000CM570,000FC-Moh305100FC-S&A이19950065,400The Division Manager feels that if you increase advertising by $23,250 you will increase sales by 4%.What would the Operating Income (OI) be if you did? (round to nearest dollar)

The Division Manager suggests that by increasing advertising by $23,250, sales will increase by 4%.…

Answered: 7) The results from one of your…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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[The following information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next year. Dept. 0 $70,000 Dept. M Dept. N Dept. P Dept. T Total $77,000 $ 39,000 $56,000 $ 38,000 $ 280,000 Sales Expenses 14,800 55,800 70,600 42,400 18,600 19,000 43, 200 46,800 16,800 Avoidable 21,600 5, 200 26,800 $43, 200 144,600 139,600 Unavoidable Total expenses 61,000 $(22,000) 62,200 63,600 284, 200 Net income (loss) $ 6,400 $(6, 200) $(25,600) $ (4, 200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPEC TED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
Suresh Co. expects its five departments to yield the following income for next year. Dept. M $77,000 Dept. O $70,000 Dept. N Dept. P Dept. T Total Sales $ 39,000 $56,000 $ 38,000 $ 280,000 Expenses Avoidable Unavoidable 21,600 5,200 26,800 19,000 14,800 55,800 42,400 18,600 46,800 16,800 144,600 139,600 43, 200 Total expenses 70,600 61,000 62, 200 63,600 284, 200 Net income (loss) $ 6,400 $(22,000) $43, 200 $(6,200) $( 25,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 1 Department 2 Department 3 Sales Variable Costs Contribution Margin Direct fixed expenses Common fixed expenses Total fixed expenses Operating income (loss) $737,000 489,500 $247,500 $132,000 82,500 Select one: $214,500 $33,000 $354,200 315,700 $38,500 $29,700 33,000 $62,700 $(24,200) $941,600 662,200 $279,400 $179,300 103,400 $282,700 $(3,300) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 3 have on DJH's total operating income? a. It would decrease total operating income by $100,100. b. It would increase total operating income by $103,400. c. It would decrease total operating income by $279,400. d. None of these options are correct. e. It would decrease total operating income by $3,300.
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I want the get the solution from requirement a to e
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the return on sales for the division? 4% 8% 10% 20% Group of answer choices 1 2 3 4
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 1 Department 2 Department 3 Sales $837,500 $402,500 $1,070,000 Variable Costs 556,250 358,750 752,500 Contribution Margin $281,250 $43,750 $317,500 Direct fixed expenses $150,000 $33,750 $203,750 Common fixed expenses 93,750 37,500 117,500 Total fixed expenses $243,750 $71,250 $321,250 Operating income (loss) $37,500 $(27,500) $(3,750) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 3 have on DJH’s total operating income? Select one: a. It would decrease total operating income by $113,750. b. It would decrease total operating income by $317,500. c. None of these options are correct. d. It would increase total operating income by $117,500. e. It would decrease total operating income by $3,750.
Click Investments has two divisions. Each division's required rate of return is 15%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Data table AB Division $ $ Operating income 12,000,000 11,520,000 Investment $ 75,000,000 $ 48,000,000 - X
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. What is Redding Company's income? OSs0.000 O sG00,000 S150,000 $550,000 48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra incurs the following costs for ane bax: Direct materials $0.35 Direct labor $0.60 Variable overhead $0.40 Fixed averhead $0.13 $1.48 Tolal Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an outside 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. What would be the transfer price if Contra transferred boxes to Mantra? O $1.35 Cannot be determined trom the information gen OS1.48 $0.90 $1.00
The operations of Smits Corporation are divided into the Child Division and the Jackson Division. Projections for the next year are as follows: ChildDivision JacksonDivision Total Sales revenue $250,000 $180,000 $430,000 Variable expenses 90,000 100,000 190,000 Contribution margin $160,000 $80,000 $240,000 Direct fixed expenses 75,000 62,500 137,500 Segment margin $85,000 $17,500 $102,500 Allocated common costs 35,000 27,500 62,500 Total relevant benefit (loss) $50,000 $(10,000) $40,000 Operating income for Smits Corporation as a whole if the Jackson Division were dropped would be a.$50,000. b.$40,000. c.$60,000. d.$22,500.

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