Exercise 23-9 (Algo) Segment elimination LO P4[The following information applies to the questions displayed below.]Suresh Company reports the following segment (department) income results for the year.Department M$ 87,000Department N Department 0$ 47,000Department P$ 69,000Department T$ 42,000Total$ 83,000$ 328,000SalesExpensesAvoidableUnavoidableTotal expenses18,80059,00077,800$ 9,20047,20023,40070,600$ (23,600)18,5006,00024,500$ 58,50023,00058,50081,500$ (12,500)54,00022,40076,400$ (34,400)161,500169,300330,800$ (2,800)Income (loss)Exercise 23-9 (Algo) Part 2b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.Total increase in income

An avoidable expense is one which will not be incurred if a particular behavior is avoided. In…

Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department I $ 42,000 Total Department M DepartmentN Department 0 Department P $ 87,000 $ 47,000 $ 83,000 $ 69,000 $ 328,000 Sales Expenses Avoidable 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) 54,000 22,400 76,400 $ (34,400) 161,500 169,300 330,800 $ (2,800) Unavoidable Total expenses Income (loss) rcise 23-9 (Algo) Part 2 ompute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated

Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department I $ 42,000 Total Department M DepartmentN Department 0 Department P $ 87,000 $ 47,000 $ 83,000 $ 69,000 $ 328,000 Sales Expenses Avoidable 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) 54,000 22,400 76,400 $ (34,400) 161,500 169,300 330,800 $ (2,800) Unavoidable Total expenses Income (loss) rcise 23-9 (Algo) Part 2 ompute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated

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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Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department O Department P Department T Department M Department N $ 42,000 $ 80,000 Decision 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $ (22,600) Department o $ 76,000 Total $ 300,000 150,800 152,000 302,800 $ (2,800)
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Question Content Area A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is a. $240,000 b. $600,000 c. $750,000 d. $270,000
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Exercise 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5] Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income. Total Company $ 675,000 405,000 1. Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even 270,000 132,000 138,000 58,000 $ 80,000 North $ 450,000 315,000 135,000 66,000 $ 69,000 South $ 225,000 90,000 135,000 66,000 $ 69,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
Activity: High-Low Point Method Month Number of Guests Total Costs January February 1,500 2,300 $143,000.00 $203,100.00 $105,450.00 March 1,000 $454,225.00 $371,225.00 $296,225.00 $353,945.00 $191,237.00 April May 4,323 4,545 3,541 4,312 June July August September 2,143 3,000 ?