Baird Company operates three segments. Income statements for the segments imply that profitability could be improved ifSegment A were eliminated.BAIRD COMPANYIncome Statements for Year 2SegmentSalesABC170,000 $241,000$246,000Cost of goods sold(125,000) (87,000)(94,000)Sales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (loss)(22,000)(27,000)(25,000)23,000127,000127,000(37,000)(51,000)(4,000)(11,000)(36,000)0$ (18,000) $ 65,000$ 91,000Requireda. Prepare a schedule of relevant sales and costs for Segment A.b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of SegmentA and (2) the elimination of Segment A.Complete this question by entering your answers in the tabs below.Required A Required BPrepare a schedule of relevant sales and costs for Segment A.

Step 1:Relevant costs are essential for decision making. Here the decision to make is to whether…

Answered: Baird Company operates three segments.…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ZACHARY COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Required a. Prepare a schedule of relevant sales and costs for Segment A A $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ (18,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) $ 109,000 b. Prepare comparative income statements for the company as a whole under two alternatives (1) the retention of Segment A and (2) the elimination of Segment A Complete this question by entering your answers in the tabs below.. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost…
Rahul
bvsg
Rundle Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. RUNDLE COMPANY Income Statements for Year 2 Segment $ 169,000 $255,000 Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) $237,000 (79,000) (28,000) 130,000 (127,000) (18,000) (93,000) (26,000) 136,000 (33,000) 24,000 (38,000) (39,000) (6,000) (19,000) Net income (loss) $ (20,000) $ 72,000 $103,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.
Vincenzo Corporation is a manufacturer with four product lines. Below is some financial information about each of the four product lines. Required:Calculate, explain, and determine which of the segments are reportable based on the:a. Revenue testb. Operating profit (loss) testc. Identifiable assets testd. 75 percent combined revenue test
Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) FANNING COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost Items for Segment A Effect on income $ Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. A $ 169,000 (123,000) (20,000) 26,000 (37,000) (5,000) $ (16,000) 0 B $242,000 (92,000) (32,000) 118,000 (35,000) (19,000) $ 64,000 с $ 262,000…
Pina Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment W a. X Y Z Total Revenue Revenue test. $57,246 9,860 24,675 6,919 $98,700 Operating Profit (Loss) $16,970 2,570 (3,260) Determine which of the operating segments are reportable based on the: W&X Reportable Segments 1,220 $17,500 Identifiable Assets $165,764 82,882 20,006 17,148 $285,800
go.3
Hyams Corp. engages solely in manufacturing operations. The following data pertain to the operating segments for the current year:In its segment information for the current year, how many reportable segments does Hyams have?a. Threeb. Fourc. Fived. Six
practice please help with formula
The following information has been assembled about Casbar Corp. as at December 31, Year 5 (amounts are in thousands): Operating segment Revenues Profit Assets $25,100 5,980 23,200 A $ 23,000 $ 6,400 B 15,100 C 16,000 (2,540) 16,100 D 4,700 1,100 9,550 E F 15,000 5,100 1,800 8,950 (380) 4,700 Required: Determine which operating segments require separate disclosures. (Round the intermediate calculations to nearest percentage.) Operating segment(s) (Click to select)

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS