Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable manufacturing costs Fixed manufacturing costs Gross Profit Operating Expenses Variable operating expenses Fixed operating expenses Net income Book Division $ 7,900,000 2,100,000 1,087,500 $4,712,500 145,000 2,926,000 $ 1,641,500 Magazine Division $3,342,300 1,046,900 1,225,800 $ 1,069,600 212,700 1,194,600 $ (337,700) Total $ 11,242,300 3,146,900 2,313,300 $5,782,100 357,700 4,120,600 $ 1,303,800 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each diuicions

Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable manufacturing costs Fixed manufacturing costs Gross Profit Operating Expenses Variable operating expenses Fixed operating expenses Net income Book Division $ 7,900,000 2,100,000 1,087,500 $4,712,500 145,000 2,926,000 $ 1,641,500 Magazine Division $3,342,300 1,046,900 1,225,800 $ 1,069,600 212,700 1,194,600 $ (337,700) Total $ 11,242,300 3,146,900 2,313,300 $5,782,100 357,700 4,120,600 $ 1,303,800 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each diuicions

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

what is a P&L
1. I n w h i c h , i f a n y , o f t h e i n v e s t m e n t s s h o w n i n t h e f o l l o w i n g t a b l e d o y o u r e c o m m e n d t h a t t h e f i r m i n v e s t ? E x p l a i n y ou r a n s w e r . H o w m u c h n e w f i n a n c i n g i s r e q u i r e d ? ( N o t e : T h e p i c t u r e a t t a c h e d i s f o r t h e n o . 1 q u e s t i o n )
b. Discuss the effect on c and p, when there is an increase in: i. So ii. iii. O K
Describe EVA.
Peri
Num.10
Define consol
Any update on D,E,F
Calculate the ROA, ROE, NOPAT , EVA
E x p l a i n t h e l i m i t a t i o n s o f b r e a k e v e n a n a l y s i s.
dinghe frieThe wdh d