Check my work mode: This shows what is correct ofRequired information[The following information applies to the questions displayed below.]Suresh Company reports the following segment (department) income results for the year.Department M Department N Department 0$ 47,000$ 83,000$ 87,000Department P$ 69,eeeSalesExpensesAvoidableUnavoidableTotal expensesIncome (loss)18,80059,00077,800$ 9,20047,20023,40070,600$ (23,600)18,5006,eee24,500$ 58,500Answer is complete but not entirely correct.Total increase in income$ 58,000 X23,eee58,50081,500$ (12,500)Department T$ 42,00054,00022,40076,400$ (34,400)Total$ 328,000161,500169,300330.800$ (2,800)b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. [The following information applies to the questions displayed below.]Suresh Company reports the following segment (department) income results for the year.Department M Department N Department 0$ 87,000$ 47,000$ 83,000Department P$ 69,000SalesExpensesAvoidableUnavoidableIncome (loss)Total expensesMNDepartmentDepartmentDepartmentDepartmentDepartmentDepartmentOPTAnswer is complete and correct.Decisiona. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated?KeepEliminateKeep18,80059,00077,800$ 9,200KeepEliminate47,20023,40070,600$ (23,600)18,5006,00024,500$ 58,50023,00058,50081,500$ (12,500)Department T$ 42,00054,00022,40076,400$ (34,400)Total$ 328,000161,500169,300330,800$ (2,800)

Avoidable costs The cost which can be avoided and will not be incurred in case of a particular…

b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Answer is complete but not entirely correct. Total increase in income 58,000

b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Answer is complete but not entirely correct. Total increase in income 58,000

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

Po.3.
If accounting profit is $400,000 greater than economic profit, what do implicit costs equal?
EA5. LO 9.4 Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)
h7
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2. 3. Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. Return on Investment $2,950,000 1,947,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $155,000. Reduce average operating assets by 4%. Action 1 595,000 (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.) Action 2 5,000,000 Action 3 (b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%.) Return on investment do % % % %
Help4
2. Prepare projected Contribution margin-based Income Statement for the fourth quarter of 20Y3 for Denver and Santa Fe Divisions based on the projected data transferred in the Assumption box. Use formula as needed. Do not hardcode.