Department Sales 1 $22000 2 400,000 3 ... 180,000
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Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising costs are $100,000 this year, and departmental sales for this year follow. How much advertising cost is allocated to each department if the allocation is based on departmental sales?
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- A company has two departments, Y and Z that incur advertising expenses of $10,200. Advertising expenses are allocated based on sales. Department Y has sales of $488,000 and Department Z has sales of $732,000. The advertising expense allocated to Departments Y and Z, respectively, are:I am unsure how to figure the percent of total from the advertising costs?Giardin Outdoors is a recreational goods retaller with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.2 million a year. Managers In the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Revenues (5000) $ 74,100 39,900 Online Stores Required: Determine the cost allocation if $3.8 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round Intermediate calculations. Enter your answers in dollars, not in millions or thousands. Fixed Variable Total $ Transactions (000) 1,066.5 283.5 Online $ Stores
- Sandhill Decor sells home decor items through three distribution channels—retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Retail Stores Internet Catalog Sales Sales revenue $12,000,000 $3,700,000 $6,600,000 Variable expenses 4,000,000 1,355,000 1,950,000 Direct fixed expenses 5,960,000 994,500 4,188,000 Average assets 8,000,000 3,700,000 2,000,000 Required rate of return 12% 12% 12% (a1) Calculate the margin and asset turnover for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12% or 5.12.) Retail Stores Internet Catalog Sales Margin enter percentages % enter percentages % enter percentages % Asset turnover enter a ratio enter a ratio enter a ratioMacee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $132,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 245,000 450,800 284,200 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? Note: Do not round your intermediate calculations. Department Sales Percent of Total Cost Allocated 1 $ 245,000 25.00 % $ 2 450,800 46.00 % 3 284,200 29.00 % Total $ 980,000 100.00 %Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Total Department Hardware Linens Sales $ 4,000,000 $ 3,000,000 $ 1,000,000 Variable expenses 1,300,000 900,000 400,000 Contribution margin 2,700,000 2,100,000 600,000 Fixed expenses 2,200,000 1,400,000 800,000 Net operating income (loss) $ 500,000 $ 700,000 $ (200,000) A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department. Based on the visualization: The relevant fixed cost in the decision to discontinue the Linens Department is: multiple choice 1 $340,000. $460,000. $800,000. $600,000. The total foregone contribution margin associated with dropping…
- Reliant Chairs sells designer seating to consumers through retail outlets. Total industry sales for the market last year were $128 million, with Reliant’s sales representing 6.5% of that total. Contribution margin is 18%. Reliant’s sales force calls on retail outlets and each sales rep earns $45,500 per year, plus 2.5% commission on all sales. Retailers receive a 38% margin on selling price and generate average revenue of $12,000 per outlet for Reliant. The marketing manager has suggested increasing customer advertising by $200,000. By how much would dollar sales need to increase to break even on this expenditure? What increase in overall market share does this represent? Another suggestion is to hire 3 more sales representatives to gain new consumer retail accounts. How many new retail outlets would be necessary to break even on the increased cost of adding the 3 sales reps? A final suggestion is to make a 10% price reduction across the board. By how much would dollar sales need to…T, and U, and pays for general advertising that benefits all departments. Advertising expense totaled $82,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations. Round the answer to the nearest whole dollar, i.e. 17,525.69 would be 17,526): Sales per department Department Sales S $ 106,000 T 215,250 U 149,150 Total $ 470,400Fortunate 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…
- D.Insert a column called percentage contribution in an appropriate area of the spreadsheet, to display the total contribution to overall sales by each salesperson. The answer is to be formatted as percentage. e.Company policy dictates that all sales volumes exceeding nine million ($8,000, 000.00) but not exceeding ten million ($10, 000, 000.00) should receive an incentive of US $700.00, otherwise they should receive US $200.00. In an appropriate area of the spreadsheet create a heading called Special Incentive 1 and make the necessary calculations using the necessary function f.Company policy also dictates that all sales volumes exceeding ten million ($10,000, 000.00) but less than or equal to twelve million ($12, 000, 000.00) should receive a trip to any Air Jamaica destination, otherwise they should not receive a trip. In an appropriate area of the spreadsheet create a heading called Special Incentive 2 and make the necessary calculations using the necessary functionBrookbury Accounting completed 150 tax returns in the month of March. Its Effective Capacity is 170 tax returns and its Design Capacity is 175 tax returns. Calculate the Efficiency and Utilization for Brookbury Accounting. What do these two numbers tell you?Blossom Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return (a) Retail Online Catalog $ $ Retail Stores Internet $ $10,120,000 4,070,000 4,570,000 8,070,000 12% $4,070,000 Residual Income. 1,620,000 1,120,000 4,070,000 12% Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Catalog Sales $3,400,000 1,920,000 1,320,000 1,610,000 12%
