C.ABC Company has 3 stores. The following data were made available in March 20X3:SalesVariable CostsContribution MarginTraceable Controllable Fixed CostPerformance MarginTraceable Non-Controllable Fixed CostSegment MarginStore 1650,000390,000260,00080,000180,000100,00080,0002.Store 21,200,000780,000420,000200,000220,000120,000100,000Store 3800,000400,000400,000180,000220,000110,000110,000Additional information:1. Store 1 is the oldest branch. Stores 1 and 3 are both in a sub-urban area, while Store 2 is the newest branch and isin a highly urbanized city.The company is considering an additional advertising cost for P21,000 to boost sales. The following alternativesare being considered:a. Advertise all the stores which will increase individual store's sales by 5%.b. Advertise Store 1 to increase its sales by P300,000 but will decrease sales of Store 3 by P200,000.REQUIRED: Determine which of the 2 alternatives, a or b, will benefit ABC Company more. Support yourrecommendation by showing the segmented income statement and the total income statement for ABC Company.

Segment reporting is the process of identifying and presenting financial information about different…

Answered: C. ABC Company has 3 stores. The…

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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MN.45.
h9
Frinner Company has two divisions, A and B, that reported the following results for October: Sales Variable expenses as a percentage of sales .... Segment margin .......... C. d. Division A £90,000 £31,000. £62,000. £93,000. £52,000 70% £2,000 Division B £150,000 If common fixed expenses were £31,000, total fixed expenses must have been a. b. 60% £23,000
Assume the following information for a merchandising company: Number of units sold 20,000 Selling price per unit $ 30 Variable selling expense per unit $ 3.60 Variable administrative expense per unit $ 3.10 Fixed administrative expenses $ 50,000 Beginning merchandise inventory $ 24,000 Ending merchandise inventory $ 19,000 Merchandise purchases $ 340,000 What is the contribution margin?
The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
N1. Account
Evansville Company had the following transactions for the month. Number Cost per Unit of Units Purchase $5,000 Purchase 6,000 Purchase 6,500 Calculate the gross margin for each of the following cost allocation methods, assuming Evansville sold just one unit of these goods for $10,000. Round your intermediate calculations and final answers to the nearest dollar amount. Gross Margin A. First-in, First-out (FIFO) B. Last-in, First-out (LIFO) х х C. Weighted Average (AVG) х
Superior Markets, Incorporated, operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, IncorporatedIncome StatementFor the Quarter Ended September 30 Total North Store South Store East Store Sales $ 3,360,000 $ 806,400 $ 1,344,000 $ 1,209,600 Cost of goods sold 1,856,064 451,584 739,200 665,280 Gross margin 1,503,936 354,816 604,800 544,320 Selling and administrative expenses: Selling expenses 915,040 259,168 352,800 303,072 Administrative expenses 428,960 118,720 169,008 141,232 Total expenses 1,344,000 377,888 521,808 444,304 Net operating income (loss) $ 159,936 $ (23,072) $ 82,992 $ 100,016 The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store should be closed or kept…
Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 2 3.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the company produce to maximize profit?
Abu Manufacturing sdn. Bhd. has 3 product A, B and C. Currently sales cost and the selling price details, and processing time requirements are as follows: PRODUCT PRODUCT PRODUCT C A B Annual Sales (units) Selling Price (RM) Unit cost (RM) Processing time Required per unit (hours) 6000 6000 750 20.00 31.00 39.00 18.00 24.00 30.00 1. 1 2 The firm is working at fully capacity (13500 processing hours per year). Fixed manufacturing overheads are absorbed into unit costs by a charge of 200% of variable cost. This procedure fully absorbs the fixed manufacturing overhead. Assuming that • The selling price is not altered. Processing time can be switched from one product line to another. • The demand at current selling prices is: PRODUCT A PRODUCT B PRODUCT C 11000 8000 2000 You are required: a) To calculate the best production program or the next operating period and to indicate the increase in net profit that this should yield. b) Identify the opportunity cost.
Philadelphia Company has the following information for March: Sales $484,795 Variable cost of goods sold 205,574 Fixed manufacturing costs 76,273 Variable selling and administrative expenses 52,568 Fixed selling and administrating expenses 35,254 a. Determine the March manufacturing margin.$fill in the blank 1 b. Determine the March contribution margin.$fill in the blank 2 c. Determine the March income from operations for Philadelphia Company.$fill in the blank 3
A recent income statement of Company A reported the following data: Units sold 8,000Sales revenue ₱7,200,000Variable costs ₱4,000,000Fixed costs ₱1,600,000 If the company desired to earn a target net profit of ₱480,000, it would have to sell:A. 1,200 units. B. 2,800 units. C. 4,000 units. D. 5,200 units.

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