Adventures Company provides event management services. The company has three employees, each assigned to specific customers. The company considers each employee'sterritory as a business segment. The following data relate to its three segments for the month of June:Sale RevenueVariable costsFrancisco$7,000$5,700Liu$11,800$7,200Jordan$14,350$11,500The business segments had the following number of customers: Francisco, 25; Liu, 28; and Jordan, 35. The total fixed costs for the month of June amount to $3,300. Whichbusiness segment was the most profitable?OA. JordanOB. Both Francisco and Liu are equally profitableOC. LiuOD. Francisco

Contribution Margin -The indicator that helps us determine how much of a company's net sales goes…

Answered: Adventures Company provides event…

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

Chou Computer Services provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 customers and earned $60,000 in revenue. The individual business segment provided services to 400 customers and earned $35,000 in revenue. The variable costs for the corporate and individual business segments amounted to $32,500 and $25,300, respectively. In addition, the fixed costs of the company amounted to $8000. The contribution margin ratios of the corporate segment and individual segment are ________, respectively. (Round your answers two decimal places.) * A) 78.57% and 16.17% B) 54.17% and 27.71% C) 54.17% and 72.29% D) 45.83% and 27.71%
The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries $ 69,000 Apparel Department cost of sales—Evendale Store $ 117,900 Corporate headquarters building lease $ 63,900 Store manager’s salary—Evendale Store $ 18,000 Apparel Department sales commission—Evendale Store $ 10,000 Store utilities—Evendale Store $ 13,400 Apparel Department manager’s salary—Evendale Store $ 12,800 Central warehouse lease cost $ 23,800 Janitorial costs—Evendale Store $ 11,200 The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company’s stores. Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3.…
Prepare a customer profitability report using the information below. $13,000 Overhead Sales Direct materials Direct labor Customer Profitability Report Sales Cost of goods sold Direct materials Direct labor Overhead Customer support costs 4, 700 Customer support costs 1, 900 Customer income 4,700 1,900 $ GA $ EA 13,000 6,600 6,400 6,400
The centralized employee travel department of Bourgeois Company has costs of $405,600. The department has serviced a total of 3,900 travel reservations for the period. The South Division has made 2,260 reservations during the period, and the West Division has made 1,640 reservations. Additional data for the two divisions is following below: SouthDivision WestDivision Sales $3,150,470 $2,929,810 Cost of goods sold 1,638,240 1,669,990 Selling expenses 786,360 718,100
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Inc. Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary 3 1,000 1 50 11 olleen sells its products at $190 per un The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Kate Co. 60 400 Required 1 Required 2 5 130 3 Cost Driver and Rate $ 600 per visit 270 per order 180 per order 210 per return and $4 per unit returned 95,000 per month Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen…
as
Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: sales in units sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Morrisey & Brown, Limited Income statements For the Three Months Ended September 30 Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income July 6,500 $ 650,000 390,000 260,000 Required 1 Required 2 Required 3 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Variable expenses: August 7,000 $ 700,000 420,000 280,000 Fixed expenses: 25,800 73,000 125,000 9,750 16,400 249,950 $ 30,050 Complete this question by entering your answers in the tabs below. Required: 1. By analyzing the data from the company's Income statements, classify each of its expenses…
The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck CompanyProduct-Line Income StatementFor the Month Ended October 31 Hats Gloves Mufflers Sales $64,400 $89,400 $26,000 Cost of goods sold (26,400) (32,000) (15,100) Gross profit $38,000 $57,400 $10,900 Selling and administrative expenses (30,200) (34,200) (15,200) Operating income (loss) $7,800 $23,200 $(4,300) Fixed costs are 15% of the cost of goods sold and 35% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.
castor borrowed today from Chuchu P100,000.00 and agreed to repay the loan with 3 equal monthly amounts, the first payment to start 1 month from today. How much is the value of the monthly payment? construct an amortization schedule. Interest is 12%compounded monthly.
D&I Inc., a merchandising company, reported the following results for September. Sales price per unit 1,075 Fixed selling and administrative expense per unit 109 Variable selling and administrative expense per unit 170 Cost of goods sold per unit 528 There were 500 units sold This question is independent of all the other questions. Please use only the information in this question to calculate the answer. Based on the information provided above calculate the number of units that need to be sold to achieve a profit of $45,000. Cost of goods sold is a variable cost in this company. Enter only the amount for the break – even in units (rounded to a whole number, based on general rounding rules) in the box, provided below. Enter the amount only. Do not enter letters, words, or the calculation.
Need assistance with question B please: Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach?
Crazy Canucks is a small, family-owned retailer specializing in alpine ski and snowboard equipment located in Squamish, B.C. An income statement for the ski department's most recent month is shown below. Operating income CRAZY CANUCKS Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Income Statement-Crazy Canucks For the Month Ended January 31 Variable expenses: Crazy Canucks Income Statement-Crazy Canucks For the Month Ended January 31 $60,600 20,200 Skis sell, on average, for $1,500 per pair. Variable selling expenses are $152 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 20% variable and 80% fixed. The company purchases its skis from several suppliers at an average cost of $900 per pair. $ 303,000 181,800 121,200 Required: 1. Prepare an income statement for the month using the contribution approach. 0 80,800 $ 40,400 2

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS