Axiom Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each withdifferent sales strategies, distribution channels, and product offerings. Axiom is now considering the sale of a bundled product called Sync,consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Axiom's very successful products. Axiom sellsequal quantities of Him and Her perfume. For the most recent year, Axiom reported the following:(Click the icon to view the sales information.)Data tableProductHimHerSync (Him and Her)Retail Price$ 40.00$60.0090.00X Requirement 1a. Allocate revenue from the sale of each unit of Sync to Him and Her using the following:a. The stand-alone revenue-allocation method based on selling price of each product. (Do not round intermediary calculations. Only round theamount you input in the cell to the nearest dollar.)HimHerStand-aloneRequirement 1b. Allocate revenue from the sale of each unit of Sync to Him and Her using the incremental revenue-allocation method, with Himranked as the primary product.HimIncrementalHer primary userIncrementalHim primary userRequirement 1c. Allocate revenue from the sale of each unit of Sync to Him and Her using the incremental revenue-allocation method, with Herranked as the primary product.HerHimHer

Cost allocation is the process of dividing up an organization's spending among several cost objects…

Answered: Axiom Company blends and sells designer…

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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Proctor & Gamble (PG) and Church & Dwight (CHD) are two iconic American consumer products companies with histories dating back to the mid-1800s and producing familiar products such as Tide, Bounty, Crest, Arm and Hammer, OxiClean, and Waterpik. Both companies primarily sell their products to retailers such as grocery stores, drug stores and other mass merchants In evaluating the two companies, it was determined that PG is approximately 15 times larger than CHD based on sales. A convenient way to analyze financial results when companies are of different sizes is through ratio analysis. Obtain the financial statements of PG for the year ended June 30, 2021, and CHD for the year ended December 31, 2021, and compute the following ratios for both companies. 1. Accounts receivable turnover for 2021 2. Inventory turnover for 2021 3. P/E (price/earnings) ratio using the 2021 diluted EPS and the most current stock price of the company (attach a screenshot of the current stock price…
Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products.The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is investigating several possible ways to improve profitability. MSI’s…
Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. Revenues Variable costs Fixed costs allocated to products Operating profit (loss) 36 Inch $ 372,200 231,600 147,230 $ (6,630) If the 36-Inch model is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 25 percent. Required A Required B Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch…
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Blue Corporation makes backpacks, with a specialty line for baseball players. This backpack has a spot for everything-helmet, spikes. glove, and bats-and it comes with a hook at the top that makes it easy to hang from a chain link fence in the dugout. The backpack division buys the hooks from-you guessed it-the hook division, which has enough capacity to meet both internal and external demand. At present, the hook and backpack divisions have agreed on a transfer price of $0.75 per hook. Current volumes, costs, and prices are listed below for each division for one month. The casts for the backpack division reflect all unit backpack costs, except for the hook. Variable cost per unit Absorption cost per unit Market price per unit Quantity produced Quantity sold externally Quantity sold internally (a) Hook Division * Your answer is incorrect. Gross margin $0,50 $0.75 $0.90 2,100 1,300 800 According to the information given, how much gross margin would each division report for one month?…
im.

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