Anna Inc. sells two products as follows:
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- Requirements Dialog content starts 1. Allocate revenue from the sale of each unit of Dynamic Duo to Smarty and Sublime using the following: a. The stand-alone revenue-allocation method based on selling price of each product b. The incremental revenue-allocation method, with Smarty ranked as the primary product c. The incremental revenue-allocation method, with Sublime ranked as the primary product d. The Shapley value method 2. Of the four methods in requirement 1, which one would you recommend for allocating Paris's revenues to Smarty and Sublime? Explain.Spiedino Company sells its products to both residential and commercial customers in eight sales territories. In which of the following ways could Spiedino be segmented? by product and then further segmented by type of customer. by type of customer and then further segmented by sales territory. by sales territory and then further segmented by product line. all of the above.Cheyenne Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Cheyenne's main products are as follows. Standalone Item Selling Price (Cost) Refrigerator $510 ($260 ) Range 570 (280 ) Stackable washer/dryer unit 710 (390 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,830. The bundle price includes delivery and installation. Cheyenne also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Cheyenne Appliance Co.
- Sandhill Center is an experienced home appliance dealer. Sandhill Center also offers a number of services for the home appliances that it sells. Assume that Sandhill Center sells ovens on a standalone basis. Sandhill Center also sells installation services and maintenance services for ovens. However, Sandhill Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service $790 860 Oven with maintenance services 990 Oven with installation and maintenance services 954 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $200. Additionally, the incremental amount charged by Sandhill Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services,…Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each of the four following case situations: (Loss amounts should be indicat a minus sign.) Units sold Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Contribution margin per unit Required A Required B Sales Variable expenses Contribution margin $ Fixed expenses Net operating income (loss) Contribution margin ratio (percent) $ $ Case 1 8,000 216,000 $ 160,000 56,000 92,000 (36,000) $ 7 $ $ $ Case 2 Case 1 454,000 323,400 65.600 174,000 (12,300) $ 11 $ Assume that more than one product is being sold in each of…Word Monty is a publishing company with a number of different book lines. Each line has contracts with a number of different authors. The company also owns a printing operation called Quick Press. The book lines and the printing operation each operate as a separate profit center. The printing operation earns revenue by printing books by authors under contract with the book lines owned by Word Monty, as well as authors under contract with other companies. The printing operation bills out at $0.01 per page, and a typical book requires 470 pages of print. A manager from Business Books, one of Word Monty's book lines, has approached the manager of the printing operation offering to pay $0.006 per page for 1,500 copies of a 470-page book. The book line pays outside printers $0.008 per page. The printing operation's variable cost per page is $0.003. Determine whether the printing should be done internally or externally, and the appropriate transfer price, under each of the following…
- DuPont Analysis: Papa John's International Inc. Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through four segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, and International Operations. The company also operates dine-in and delivery restaurants. As of December 29, 2019, it operated 5,395 Papa John's restaurants, which included 598 company-owned and 4,797 franchised restaurants. The company was founded in 1984 and is headquartered in Louisville, Kentucky. ROE ROA Managing Exenses Net Profit margin Papa John's International Inc. USD Millions 2015 Return on Capital shareholders have invested in the company Sales COGS SG&A Interest Expense ROE Total Assets Cash = Net Profit Total Asset X Margin Turnover Additional Paid-In Capital Retained Earnings Treasury Stock Summarize your DuPont Analysis findings…Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounting intern was asked to prepare segmented income statements that the company's divisional managers could use to calculate their break-even points and make decisions. She took the prior month's companywide income statement and prepared the absorption format segmented income statement shown below: erences Mc. Graw H&M Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Total Company $ 825,000 555,500 269,500 260,000 $9,500 Commercial Residential $ 275,000 $ 550,000 154,000 401,500 121,000 148,500 114,000 146,000 $ 7,000 $ 2,500 In preparing these statements, the intern determined that Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $79,500 of common fixed expenses that would continue to be incurred even if the Commercial or…Under the sales value at splitoff method, what portion of the joint costs would be allocated to Seduction and Romance, respectively?