### Crane Company Quarterly Division Analysis**Overview:**Crane Company operates four divisions. In the first quarter of 2022, the company achieved an aggregate operating income of $210,600. Below are the results for each division:| **Division** | **I** | **II** | **III** | **IV** ||--------------|------------|-----------|-----------|------------|| **Sales** | $245,000 | $197,000 | $504,000 | $450,000 || **Cost of Goods Sold** | 200,000 | 192,000 | 301,000 | 249,000 || **Selling & Administrative Expenses** | 72,400 | 63,000 | 58,000 | 50,000 || **Income (Loss) from Operations** | $(27,400) | $(58,000) | $145,000 | $151,000 |**Variable Cost Analysis:**The following table provides the percentages of variable costs for each division:| **Division** | **I** | **II** | **III** | **IV** ||--------------|-------|--------|---------|--------|| **Cost of Goods Sold** | 73% | 91% | 82% | 75% || **Selling & Administrative Expenses** | 39% | 59% | 50% | 61% |**Considerations for Discontinuance:**- Discontinuing any division would save 50% of the fixed costs and expenses associated with that division.- Top management is concerned about the unprofitable divisions (I and II). The consensus is that one or both should be considered for discontinuation. The image contains two sections related to a financial analysis scenario for a company, focusing on the potential discontinuance of a business division. Each section contains tables to fill out financial figures, such as contribution margin, fixed costs, and income from operations.**First Section:**- **Status:** Your answer is correct.- **Task:** Prepare an incremental analysis concerning the possible discontinuance of Division I.- **Columns:** Continue, Eliminate, Net Income Increase (Decrease) - **Contribution Margin:** - Continue: $78,784 - Eliminate: $[Blank] - Net Income Increase (Decrease): $[Blank] - **Fixed Costs:** - Cost of Goods Sold: - Continue: $54,000 - Eliminate: $22,000 - Net Income Increase (Decrease): $[Blank] - Selling and Administrative: - Continue: $43,560 - Eliminate: $26,596 - Net Income Increase (Decrease): $[Blank] - Total Fixed Expenses: - Continue: $96,536 - Eliminate: $48,596 - Net Income Increase (Decrease): $[Blank] - **Income (Loss) from Operations:** - Continue: $-17,000 - Eliminate: $[Blank] - Net Income Increase (Decrease): $[Blank]- Additional Notes: Available eTextbook and Media, with 2 of 5 attempts used.**Second Section:**- **Status:** Your answer is partially correct.- **Task:** Similar analysis task as above, with a focus on incremental analysis using appropriate signs to denote decreases or losses.- **Columns:** Continue, Eliminate, Net Income Increase (Decrease) - **Contribution Margin:** - [All fields empty] - **Fixed Costs:** - Cost of Goods Sold: - Continue: $[Blank] - Eliminate: $[Blank] - Net Income Increase (Decrease): $[Blank] - Selling and Administrative: - Continue: $23,606 - Eliminate: $12,926 - Net Income Increase (Decrease): $13,736 - Total Fixed Expenses: - [All fields empty] - **Income (Loss) from Operations:** - Continue: $

Here in this question, we are required to calculate incremental profit/loss. This type of analysis…

Answered: Crane Company has four operating…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Division P reported Income from Operations of $875,000 and Total Service Department Charges of $575,000. Therefore, which statement is correct: Income from Operations before Service Department Charges was $1,450,000 O Income from Operations before Service Department Charges was $300,000 Net Income was $300,000 Gross Profit was $300,000
The gross profit for the Rails Division is
The Textile Division of Electrotech Corporation reported the following results for a recent year Sales $9,000,000 Expenses 7,500,000 Total assets (1/1) 6,000,000 Total assets (12/31) 6,200,000 Refer to the Textile Division. What was the profit margin for The Textile Division? Select one: а. 17% b. 24% C. 69% d. 25%
7-20 7-27 22 7-27 7-27 7-28 7-29 7-35 7-37 7-38 7-39 8-1 9-1 P7-5 (LO 6), AN Brislin Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $213,000 and the following divisional results. Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations I $250,000 200,000 75,000 $(25,000) Analysis reveals the following percentages of variable costs in each division. Division Cost of goods sold Selling and administrative expenses II III IV $200,000 $500,000 $450,000 192,000 300,000 250,000 60,000 60,000 50,000 $(52,000) $140,000 $150,000 III 80% II I 70% 90% 60 40 50 Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued. Instructions a. Compute the contribution margin for Divisions I and II. a.…
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Phone Earbuds Combined $ 200,000 98,000 $ 95,000 $ 295,000 58,900 102,000 36,100 156,900 138,100 20,000 8,700 28,700 1,150 450 1,600 2,100 300 2,400 7,060 3,840 10,900 2,700 1,800 4,500 10,500 4,500 43,510 19,590 $ 58,490 $ 16,510 15,000 63,100 $ 75,000 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 0 Departmental…
The following data are for the Akron Division of Consolidated Rubber, Incorporated: Sales $ 750,000 Net operating income $ 45,000 Average operating assets $ 250,000 Stockholders' equity $ 75,000 Residual income $ 15,000 For the past year, the turnover used in ROI calculations was
Whitman Company has just completed its first year of operations. The company's traditional format income statement for the year follows: Whitman Company Income Statement Sales (35,000 units × $25 per unit) Cost of goods sold (35,000 units × $15 per unit) Gross margin Selling and administrative expenses Net operating income Amount $ 875,000 525,000 350,000 278,000 $ 72,000 The company's selling and administrative expenses consist of $208,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $15 unit product cost given above is computed as follows: Direct materials Direct labor Variable overhead Fixed overhead ($100,000 ÷ 50,000 units) Unit product cost (under traditional costing) $ 6 6 1 2 $15 Required: 1. Prepare a contribution format income statement for the year ended December 31. 2. What was the contribution toward fixed expenses and profits for each unit sold? (State this figure in a single dollar amount per snowboard.) 3. What would operating income be if…
Scribe Company, a manufacturer of writing instruments, provides the following financial information: Operating income Net sales Total assets at Jan. 1 Pen Division Pencil Division $100,000 $30.000 $500,000 $150,000 $580,000 $255,000 $610,000 $275,000 Total assets at Dec. 31 Calculate the return on investment for the Pencil Division. (Round your answer to two decimal places.) OA. 11.32% OB. 10.91% OC. 11.76% OD. 16.81%
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A condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year ended December 31 is as follows: Sales $3,920,000 Cost of goods sold 2,625,200 Gross profit $ 1,294,800 Operating expenses 746,000 Income from operations $ 548,800 Invested assets $2,800,000 Assume that the Electronics Division received no charges from service departments. The president of Gihbli Industries Inc. has indicated that the division’s return on a $2,800,000 investment must be increased to at least 22.4% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $560,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would be less than the amount of depreciation expense on the old equipment by $100,800. This decrease in expense would be included as part of the cost of goods sold. Sales would remain…

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