A corporation has two major business segments--A and B. The following information is given for each division for March.RevenueVariable expensesTraceable fixed expensesAllocated common expensesO $50,000.$60,000.A properly constructed segmented income statement in a contribution format would show that the segment margin of the Bbusiness segment is:$106,000.A$690,000352,000O $(13,000).104,00089,000B$140,00034,00046,00073,000

Contribution margin = Revenue - Variable expenses Segment margin = Contribution margin - Traceable…

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. A properly constructed segmented income statement in a contribution format would show that the segment margin of the B business segment is: $60,000. $106.000. A $690,000 352,000 104,000 89,000 $(13,000). B $140,000 34,000 46,000 73,000

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. A properly constructed segmented income statement in a contribution format would show that the segment margin of the B business segment is: $60,000. $106.000. A $690,000 352,000 104,000 89,000 $(13,000). B $140,000 34,000 46,000 73,000

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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Data for September concerning a corporation's two major business segments-Fibers and Feedstocks-appear below: Sales revenues, Fibers Sales revenues, Feedstocks Variable expenses, Fibers $ 940,000 $ 905,000 $ 406,000 $368,000 $ 136,000 $ 188,000 Variable expenses, Feedstocks Traceable fixed expenses, Fibers Traceable fixed expenses, Feedstocks Common fixed expenses totaled $401,000 and were allocated as follows: $203,500 to the Fibers business segment and $197,500 to the Feedstocks business segment. Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. Net operating income (loss) Total Company Fibers Feedstocks
Data for January for Bondi 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 $ 620,000 $ 359,700 $ 74,100 $ 478,400 $ 273,000 $ 61,900 In addition, common fixed expenses totaled $167,800 and were allocated as follows: $87,100 to the North business segment and $80,700 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
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Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Traceable fixed expenses Sales Variable expenses Contribution margin Segment margin Common fixed expenses Net operating income The dollar sales required for the company to break even is closest to: $ 300,000 $ 209,500 Total $ 509,500 120,000 180,000 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous YearSales $4,000,000 $3,600,000Cost of goods sold 2,280,000 1,872,000Selling expenses 600,000 648,000Administrative expenses 520,000 360,000Income tax expense 240,000 216,000a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage.b. Comment on the significant changes disclosed by the comparative income statement.
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Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
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)
Exercise 14-27 (Algo) Computing Divisional Income: Incomplete Information and Financial Ratios (LO 14- 1) The following partial financial information (in thousands of dollars) is available for Thole, Incorporated: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place. Sales Cost of sales Gross margin Selling, General and Administrative Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin Pacific 20.0 (Thousands of Dollars) Southern 40.00% 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % Total 100.0 $1,016.8 48.00 % 32.80 % 26.24 %
Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows: Metro Suburban Outlying Service Revenue ₱ 90,000 ₱ 70,000 ₱ 35,000 Variable Expenses 15,000 10,000 5,000 Controllable Fixed Expenses 30,000 25,000 10,000 Fixed Expenses controllable by others 20,000 15,000 5,000 In addition to the expenses listed above, the company has ₱6,000 common fixed expenses. The income tax expense for the year is ₱21,000. What is the segment margin associated with the Suburban Division? Show solution Group of answer choices ₱ 20,000 ₱ 35,000 ₱ 15,000 ₱ 25,000