d traceable fixed expenses of $31,000. During the same month, the West business segment had sales revenues of $910,000, variable expenses of $480,000, and traceable fixed expenses of $173,000. The common fixed expenses totaled $254,000 and were allocated as follows: $127,000 to the East business segment and $127,000 to the West business segment. The contribution margin of the
Q: Quaye Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying.…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: olomon Corporation operates three investment centers. The following financial statements apply to…
A: Residual income is the remaining balance of the operating income that is remained after the…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: Economic value added is the measure of the financial performance of any company. It indicates the…
Q: Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report…
A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…
Q: answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant…
A: Income statement contains the information of sales, cost of goods, operating expenses , depreciation…
Q: Panda Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the…
A: Income Statement: Revenues (amount received from the sale of products and services before…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: ROI provides a valuable tool for evaluating investments, measuring performance, and making informed…
Q: Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling…
A: The operating profit can be defined as that amount which remains with the business entity after…
Q: Oriole Corporation's Ambulance division reported net operating profits of $1516000 during the year.…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Tubaugh Corporation has two major business segments-East and West. In December, the East business…
A: The contribution margin income statement for West business segment is presented below: Sales…
Q: louthier Corporation has two divisions: Home Division and Commercial Division. The following report…
A: Break-Even Analysis -By examining the relationship between a company's revenue, fixed costs, and…
Q: Hill Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has…
A: Income statement: Income statement is the financial statement that shows the financial performance…
Q: Munoz Company operates three segments. Income statements for the segments imply that profitability…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: Operating income is the difference between total revenue and total operating expenses of the…
Q: Revenue and expense data for the current calendar year for Tannenhill Company and for the…
A: Percentages are calculated by taking Sales as a base (100%) and dividing all the figures with the…
Q: Gibson Corporation's balance sheet indicates that the company has $580,000 invested in operating…
A: Hi studentSince there are multiple subparts asked, we will answer only first three subparts.Return…
Q: What is the profit margin of each division? Round to one decimal place.
A: The divisional profit margin is the margin of the profit which has been earned by the division from…
Q: Leno Corporation operates in three different industries each of which is appropriately regarded as a…
A: Operating profit refers to the earnings that are made by a business from its day-to-day business…
Q: Chevalier Company has identified five Industry segments: plastics, metals, lumber, paper, and…
A: The term reportable segment refers to the International Financial Reporting Standards (IFRS), a set…
Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current…
A: The income statement is prepared to know the profits and losses earned by business during the…
Q: Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those…
A: The segmented income statement is a detailed presentation of the revenue and expenditure by breaking…
Q: . What is the company’s margin (net income after taxes) as a percentage (this is return on sales)…
A: Profit Margin: It is the ratio of the profit made by the company divided by its sales. Asset…
Q: Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive…
A: The divisional performances need to be computed by adding all the departmental revenues and…
Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current…
A: Vertical analysis is an investigation used to analyze the authentic information. It demonstrates the…
Q: Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling…
A: The operating profit can be defined as that amount which is remained with the business entity after…
Q: Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments,…
A: Note: Corporate administrative expenses are not related to divisions. So, it is not apportioned to…
Q: Franklin Company operates three segments. Income statements for the segments imply that…
A: An income statement helps in analyzing where to increase the revenue and decrease the cost to…
Q: dams Company operates three segments. Income statements for the segments imply that profitability…
A: Comparative Income Statements - It Is a Part Of The Books Of a Company And Is Also Shows The…
Q: Media Marketing Specialists operates in three geographic segments: New England, Southeast, and…
A: All the revenues and expenses will be recorded in the financial statements of the company. The…
Q: King Company operates in 4 different industries, each of which is appropriately regarded as a…
A: Segment Reporting: Segment reporting divides a company's operations into digestible chunks or…
Q: Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products…
A: Income statement: Income statement is the financial statement which shows the financial performace…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: RETURN ON INVESTMENT Return on Investment is the Ratio between Net Operating Income & Average…
Q: Diggun Limited operates a mining company. For the last operating cycle, the company reports…
A: Particulars Amount Sales $15752325 Less: Variable costs $12335461 Contribution margin $3416864…
Q: Data for September concerning Greenberger Corporation's two major business segments-Fibers and…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Nicholas Technologies operates two divisions Hardware Services and Software Services. During the ce…
A: The income statement represents the net income or net loss that is calculated by deducting the…
Q: Neelon Corporation has two divisions: Southern Division and Northern Division. The following data…
A: The cost–volume–profit analysis is conducted according to certain assumptions. These assumptions are…
Q: A company has two departments, Y and Z that incur advertising expenses of $10,200. Advertising…
A: allocation of expenses is an essential accounting practice that enables companies to track and…
Q: Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling…
A: Operating profit is the difference between revenue and costs of the business. Transfer price is the…
Q: The contribution margin of the West business segment is:
A: Contribution margin the total amount of revenue available after covering variable costs to cover…
Q: Darby Company, operating at full capacity, sold 131,600 units at a price of $126 per unit during the…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Tubaugh Corporation has two major business segments--East and West. In December, the East business…
A: The contribution margin is the difference between the sale price and the variable costs associated…
Q: Rundle Transport Company divides its operations into four divisions. A recent income statement for…
A: Requirements:-1 Computation of how much would companywide income increase or decrease if West…
Q: PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for…
A: Answer a) PDT Co. Divisional Income Statements For the Year Ended December 31, 20--…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: Economic Value Added (EVA), sometimes known as Economic Profit, is a metric built on the Residual…
Q: he year for a selling price of $26 each—These items cost $16 each and had $2 of variable selling…
A: The income statement is one of three basic financial statements that describe a company's financial…
Q: Data for September concerning a corporation's two major business segments-Fibers and…
A: The property's produced revenue less operational costs taxes and debt payment not included…
Q: Prairie Corporation has sales of $7,000,000 in its first year of operation. During this first year…
A: Income Statement is that which shown the business performance. It is prepare in every company every…
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $240,000, variable expenses of $135,000, and traceable fixed expenses of $31,000. During the same month, the West business segment had sales revenues of $910,000, variable expenses of $480,000, and traceable fixed expenses of $173,000. The common fixed expenses totaled $254,000 and were allocated as follows: $127,000 to the East business segment and $127,000 to the West business segment.
The contribution margin of the West business segment is:
Step by step
Solved in 2 steps
- Data for January for Bondi Corporation and its two major business segments, North and South, appear below. Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South $ 620,000 $ 359,700 $ 74,100 $ 478,400 $ 273,000 $ 61,900 In addition, common fixed expenses totaled $167,800 and were allocated as follows: $87,100 to the North business segment and $80,700 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:Gibson Corporation’s balance sheet indicates that the company has $580,000 invested in operating assets. During the year, Gibson earned operating income of $67,280 on $1,160,000 of sales. Required Compute Gibson’s profit margin for the year. Compute Gibson’s turnover for the year. Compute Gibson’s return on investment for the year. Recompute Gibson’s ROI under each of the following independent assumptions:(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting in an increase in operating income from $67,280 to $76,560.(2) Sales remain constant, but Gibson reduces expenses, resulting in an increase in operating income from $67,280 to $69,600.(3) Gibson is able to reduce its invested capital from $580,000 to $464,000 without affecting operating income.Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous YearSales $4,000,000 $3,600,000Cost of goods sold 2,280,000 1,872,000Selling expenses 600,000 648,000Administrative expenses 520,000 360,000Income tax expense 240,000 216,000a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage.b. Comment on the significant changes disclosed by the comparative income statement.
- The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $18,840 Cost of goods sold $(16,010) Selling, administrative, and other expenses (1,700) Total expenses $(17,710) Operating income $1,130 Assume that $4,140 million of cost of goods sold and $940 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $2,260 Ending inventory $2,640 Also, assume that 40% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Ansara Company. Round numbers to nearest million.Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A B C Sales $ 330,000 $ 480,000 $ 500,000 Cost of goods sold (242,000 ) (184,000 ) (190,000 ) Sales commissions (30,000 ) (44,000 ) (44,000 ) Contribution margin 58,000 252,000 266,000 General fixed operating expenses (allocation of president’s salary) (92,000 ) (92,000 ) (92,000 ) Advertising expense (specific to individual divisions) (6,000 ) (20,000 ) 0 Net income (loss) $ (40,000 ) $ 140,000 $ 174,000 Required Prepare a schedule of relevant sales and costs for Segment A. 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. Options for required A table are: Advertising…Darby Company, operating at full capacity, sold 129,600 units at a price of $123 per unit during the current year. Its income statement is as follows: Sales $15,940,800 Cost of goods sold 5,658,000 Gross profit $10,282,800 Expenses: Selling expenses $2,829,000 Administrative expenses 1,681,000 Total expenses 4,510,000 Income from operations $5,772,800 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $1,476,000 in yearly sales. The expansion will increase fixed costs by $196,800, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $fill in the blank 1…
- Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income Divisional assets (beginning of year) Current liabilities (beginning of year) RAD expenditures Carolinas $1,600 160 1,000 240 800 Northeast $5,500 Complete this question by entering your answers in the tabs below. 432 1,500 240 720 R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). a-2. Which division had the better performance?A corporation has two major business segments--A and B. The following information is given for each division for March. Revenue Variable expenses Traceable fixed expenses Allocated common expenses O $50,000. $60,000. A properly constructed segmented income statement in a contribution format would show that the segment margin of the B business segment is: $106,000. A $690,000 352,000 O $(13,000). 104,000 89,000 B $140,000 34,000 46,000 73,000Darby Company, operating at full capacity, sold 124,200 units at a price of $84 per unit during the current year. Its income statement is as follows: Sales $10,432,800 Cost of goods sold 3,696,000 Gross profit $6,736,800 Expenses: Selling expenses $1,848,000 Administrative expenses 1,120,000 Total expenses 2,968,000 Income from operations $3,768,800 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $924,000 in yearly sales. The expansion will increase fixed costs by $123,200, but will not affect the relationship between sales and variable costs. 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $fill in the blank 1 Total fixed…
- Franklin Corporation's balance sheet indicates that the company has $570,000 invested in operating assets. During Year 2, Franklin earned operating income of $64,980 on $1,140,000 of sales. Required a. Compute Franklin's profit margin for Year 2. b. Compute Franklin's turnover for Year 2. c. Compute Franklin's return on investment for Year 2. d. Recompute Franklin's ROI under each of the following independent assumptions: (1) Sales increase from $1,140,000 to $1,368,000, thereby resulting in an increase in operating income from $64,980 to $82,080. (2) Sales remain constant, but Franklin reduces expenses, resulting in an increase in operating income from $64.980 to $67,260. (3) Franklin is able to reduce its invested capital from $570,000 to $456,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to C Req D Compute Franklin's profit margin, turnover and return on investment for Year 2. Note: Round "Profit margin" and "Return…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…Stryker corp. Has two major business segments- east and west. In April, the east business segment had sales revenue of 500,000, variable expenses of 280,000 and traceable fixed expenses of 80,000. During the same month, the west business segment had sales revenues of 970,000, variable expenses of 514,000 and traceable fixed expenses of 184,000. The common fixed expenses total 280,000 and were allocated as follows: 112,000 to the east business segment and 168,000 to the west business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the east business segment is: 108,000 28,000 140,000 280,000
