rive - Google DriveMy Drive - Google Drivet Front Desk Operations 2020 - Go XakeAssignment/takeAssignmentMain.do?invoker%=&takeAssignmentSessionLocator=&inprogress=false☆ Tp Oix9 TVCC EmailMy Math Lab Log In to CanvasMathway | Calculus...N NetflixCengage Login Login国R2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.Unit variable costUnit contribution margin3. Compute the break-even sales (units) for the current year.units4. Compute the break-even sales (units) under the proposed program for the following year.units5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $4,478,400 of income from operations that was earned in the currentyear.units6. Determine the maximum income from operations possible with the expanded plant.7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?%$48. Based on the data given, would you recommend accepting the proposal?a. In favor of the proposal because of the reduction in break-even point.b. In favor of the proposal because of the possibility of increasing income from operations.C. In favor of the proposal because of the increase in break-even point.d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.Choose the correct answer.%24%24%24%24 My Drive - Google DriveX 4 My Drive - Google DriveFront Desk Operations 2020 - Go X +ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3DfalseTpNetflix0z TVCC EmailP My Math Lab Log In to CanvasX Mathway | Calculus..NNetflix Cengage Login* LoginReadin-Darby Company, operating at full capacity, sold 114,800 units at a price of $108 per unit during the current year. Its income statement is as follows:Sales$12,398,400Cost of goods sold4,392,000Gross profit$8,006,400Expenses:Selling expenses$2,196,000Administrative expenses 1,332,000Total expenses3,528,000Income from operations$4,478,400The division of costs between variable and fixed is as follows:VariableFixedCost of goods sold60%40%Selling expenses50%50%Administrative30%70%expensesManagement is considering a plant expansion program for the following year that will permit an increase of $972,000 in yearly sales. The expansion will increase fixed costs by$129,600, but will not affect the relationship between sales and variable costs.Required:1. Determine the total variable costs and the total fixed costs for the current year.Total variable costs$%24

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Darby Company, operating at full capacity, sold 114,800 units at a price of $108 per unit during the current year. Its income statement is as follows: Sales $12,398,400 Cost of goods sold 4,392,000 Gross profit $8,006,400 Expenses: Selling expenses $2,196,000 Administrative expenses 1,332,000 Total expenses 3,528,000 Income from operations $4,478,400 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative 30% 70% expenses Management is considering a plant expansion program for the following year that will permit an increase of $972,000 in yearly sales. The expansion will increase fixed costs by $129,600, 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

Darby Company, operating at full capacity, sold 114,800 units at a price of $108 per unit during the current year. Its income statement is as follows: Sales $12,398,400 Cost of goods sold 4,392,000 Gross profit $8,006,400 Expenses: Selling expenses $2,196,000 Administrative expenses 1,332,000 Total expenses 3,528,000 Income from operations $4,478,400 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative 30% 70% expenses Management is considering a plant expansion program for the following year that will permit an increase of $972,000 in yearly sales. The expansion will increase fixed costs by $129,600, 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

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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[The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage Cheese ($ millions) Division Division Invested assets, beginning Invested assets, ending $2,676 2,600 2,688 $4,469 4,407 3,932 641 Sales Operating income 356 Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
Vernon transport company divides its operations into four divisions. A recent statement for its West Division folows Vernon Transport Comapny Wesy division Income Statement for year 3 Revenue $670,000 Salaries for drivers (520,000) Fuel expenses (67,000) Insurance (87,000) Division-level facility- sustaining costs (57,000) Companywide facility-sustaining costs (147,000) Net loss $208,000 Required a) By how much would cormpanywide income increase or decrease if West Division is estimated? Should West Division be eliminated? b) assume that West Division is able to increase its revenue to $760,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segemnt were eliminated. Should West Division be eliminated if revenue were $760,000? c) What is the mininum amount of revenue required to Jusify continuing the operation of West Divison? Complete this question by entering your answer in the table below. Income Would…
Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $34,850,000 $37,540,000 Operating income 1,359,150 1,464,060 Average operating assets 10,000,000 10,000,000 Canned Foods Division: Year 1 Year 2 Sales $11,270,000 $11,837,800 Operating income 540,960 449,836 Average operating assets 5,000,000 5,000,000 Required: Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places. 1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division. Frozen Foods Division ROI Margin Turnover Year 1 fill in the blank 1 % fill in the blank 2 % fill in the blank 3 Year 2 fill in the blank 4 % fill in the blank 5 % fill in the blank 6 2. Compute the ROI and the margin and turnover ratios for each year for the Canned…
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Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling Burdeno's inventory and maintaining inventory for future sale. Financing Division takes loan applications, packages loans into pools, and sells them in the financial markets. It also services the loans. Both divisions meet the requirements for segment disclosures under accounting rules. Sales Division had $8 million in sales last year. Costs, other than those charged by Financing Division, totaled $6 million. Financing Division earned revenues of $2.5 million from servicing loans and incurred outside costs of $3 million. In addition, Financing charged Operations $900,000 for loan-related fees. Sales' manager complained to corporate that Financing was charging 150 percent of the commercial rate for loan-related fees and that Sales would be better off sending its buyers to an outside lender Financing's manager replied that although commercial rates could be lower, servicing these loans is more…
The gross profit for the Rails Division is
The following is partial information for Charleston Company’s most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron. Bermuda Division Midiron Division Sales revenue ? $ 600,000 Average invested assets $ 2,500,000 ? Net operating income $ 160,000 $ 150,000 Profit margin 20 % ? Investment turnover ? 0.16 Return on investment ? ? Residual income $ 40,000 $ (30,000 ) Required:1. Without making any calculations, determine whether each division’s return on investment is above or below Charleston’s hurdle rate.2. Determine the missing amounts in the preceding table.3. What is Charleston’s hurdle rate?4-a. Suppose Charleston has the opportunity to invest additional assets to help expand the company’s market share. The expansion would require an average investment of $2,800,000 and would generate $140,000 in additional income. Calculate…
Darby Company, operating at full capacity, sold 131,600 units at a price of $126 per unit during the current year. Its income statement is as follows: Sales $16,581,600 Cost of goods sold 5,880,000 Gross profit $10,701,600 Expenses: Selling expenses $2,940,000 Administrative expenses 1,764,000 Total expenses 4,704,000 Income from operations $5,997,600 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 $1,386,000 in yearly sales. The expansion will increase fixed costs by $184,800, but will not affect the relationship between sales and variable costs. Required: Determine the total variable costs and the total fixed costs for the current year. Total variable costs $ fill in the blank 1 Total fixed costs $ fill in the blank 2 Determine (a) the unit…
Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. RUNDLE TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 620,000 Salaries for drivers (470,000 ) Fuel expenses (62,000 ) Insurance (82,000 ) Division-level facility-sustaining costs (52,000 ) Companywide facility-sustaining costs (142,000 ) Net loss $ (188,000 ) Required By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Assume that West Division is able to increase its revenue to $690,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $690,000? What is the minimum amount of revenue required to justify continuing the operation of West Division?
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Fortunate Inc. is involved in retailing and has three profit centers classified as “East” and “West” and “South.” East Division sold 38,000 units during the year for a selling price of $25 each—These items cost $15 each and had $2.50 of variable selling expenses (sales commissions) that could be directly traced to the units. West Division sold 16,000 units during the year for a selling price of $27 each—These items cost $17 each and that had $3 of variable selling expenses (sales commissions) that could be directly traced to the units. South Division sold 42,000 units during the year for a selling price of $26 each—These items cost $16 each and had $2 of variable selling expenses (sales commissions) that could be directly traced to the units. Fixed Division Operating Costs that could be directly traced to the divisions were $160,000 for East Division and $95,000 for West Division, and $200,000 for South Division. There were $230,000 of Corporate Costs (which was $20,000 for…
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