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

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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
Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was OMR270. At the beginning of the month of May the company has inventory of 1,220 smartphones. During the month of May, the company purchased additional 1,000 smartphones. By the end of May, the company had 480 smartphones remaining in the store. The selling and general expenses for the company include wages and commissions, which include fixed monthly payment of OMR1,200 plus a OMR5 per unit sold; and depreciation of OMR2,000 per month. Assuming a selling price per unit of OMR540, calculate the total contribution margin. Select one: O a. None of the given answers O b. OMR323,300 OC OMR457,900 O d. OMR469,800 O e. OMR461,100
What is the total amount of the costs listed above that are NOT direct costs of the GC Store?
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…
Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The company’s first effort at preparing a segmented income statement for May is given below. Sales Region West Central East Sales $ 311,000 $ 796,000 $ 703,000 Regional expenses (traceable): Cost of goods sold 94,000 240,000 312,000 Advertising 105,000 236,000 240,000 Salaries 54,000 54,000 107,000 Utilities 8,700 16,100 13,600 Depreciation 21,000 35,000 28,000 Shipping expense 17,000 31,000 36,000 Total regional expenses 299,700 612,100 736,600 Regional income (loss) before corporate expenses 11,300…
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…
Please use the following data for Lawn & Order Garden Supply to answer the questions below the table: Gross Profit Net Sales Other Income Operating Income Sales Returns and Allowances December $12,474 34,650 2,500 7,484 350 January $18,711 51,975 400 11,227 525 Lawn & Order had the largest sales revenue in the month of: Lawn & Order had the largest operating expenses in the month of: Lawn & Order had the largest net income in the month of: February $18,055 58,608 300 10,833 893 0 • March $18,958 55,400 200 11,375 560
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.

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