Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $280,000, variable expenses of $146,100, and traceable fixed expenses of $68,300. The Alpha Division has sales of $590,000, variable expenses of $327,800, and traceable fixed expenses of $128,700. The total amount of common fixed expenses not traceable to the individual divisions is $129,200. What is the company's net operating income?**Multiple Choice**- $69,900- $199,100- $262,200- $396,100

Net operating income: net operating income is the income generated by the company from its operation…

Answered: Miscavage Corporation has two…

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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Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $37,300 and the Export Products Division's divisional segment margin is $89,700. The total amount of common fixed expenses not traceable to the individual divisions is $100,400. What is the company's net operating income (loss)? Multiple Choice $227,400 $127,000 $26,600 ($127,000)
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Salaries $ 30,000 20,000 40,000 Depreciation Advertising Department Drilling Grinding Total Multiple Choice Allocation Base Number of employees Cost of goods sold Percentage of total sales Number of employees 1,000 1,500 2,500 $20,000. Sales $ 325,000 475,000 $ 800,000 The amount of depreciation that should be allocated to Drilling for the current period is: Cost of goods sold $ 75,000 125,000 $ 200,000
The Commercial Division of Lobo Company has operating income of $12,680,000 and assets of $80,500,000. The minimum acceptable return on assets is 15%. What is the residual income for the division?
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $39,800 and the Export Products Division's divisional segment margin is $92,200. The total amount of common fixed expenses not traceable to the individual divisions is $104,400. What is the company's net operating income (loss)? $236,400 $132,000 $27,600 ($132,000)
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $43,000 for Division A. Division B had a contribution margin ratio of 30% and its sales were $240,000. Net operating income for the company was $35,200 and traceable fixed expenses were $50,400. Corbel Corporation's common fixed expenses were:
Lita company has two divisions: Division A and division B. Last month the company's income before teax was $2000 and common fixed expenses were $800. division B's segmend profit margin was $1100. Divisions A's traceable fixed expenses were $300. How much was Divisions A's segment contribution margin? $1000 $400 $2000 $1400 None of those
Operating income of the Pierce Automobile Division is $2,225,000. If operating income before support department allocations is $3,250,000,
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…
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Base Salaries $ 30,000 Number of employees Depreciation 20,000 Cost of goods sold Advertising 40,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,000 $ 325,000 $ 75,000 Grinding 1,500 475,000 125,000 Total 2,500 $ 800,000 $ 200,000 The amount of salaries that should be allocated to Grinding for the current period is:
ABC Corporation has three service department with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 Number of Copies Accounting 500,000 Number of invoices processed Personnel Department 400,000 Number of employees ABC has three operating divisions (organized as profit centers), mirco, macro, and super. Their revenue, cost and activity information are-as follows: Mirco Macro Super Direct Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies 20,000 30,000 50,000 Number of invoices 700 800 500 processed Number of employees 130 145 125 How much of the $500,000 total cost from the accounting department would be allocated to the super division?
LuLu Ltd has two divisions: Pulp Division and Paper Division. The Pulp Division produces paper pulp which the Paper Division purchases to produce toilet paper. The following information relates to the production of paper pulp. Pulp Division $800.00 Market price of paper pulp per metric ton Variable costs per metric ton: -Processing cost -Marketing cost Fixed cost per metric ton $375.00 $75.00 $15.00 The Pulp division has a monthly capacity of 1,000 metric tonnes of paper pulp, of which 750 tonnes are sold internally and 250 tonnes are sold externally. Due to a sudden surge in demand for toilet paper, Paper division now requires an extra 125 tonnes of paper pulp from Pulp Division. Calculate the transfer price of one metric ton of paper pulp using the general transfer-pricing formula. Select one: a. $450.00 b. $800.00 c. $375.00 O d. $440.00 e. $425.00
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Additional data for the two divisions is following below: Retail Division Commercial Division Sales $2,150,000 $1,200,000 Cost of goods sold 1,300,000 800,000 Selling expenses 150,000 175,000 Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations. Hardy Company Divisional Income from Operations blank Retail Division Commercial Division $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - Income from operations $fill in the blank 19 $fill in the blank 20 Check My Work PreviousNext

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