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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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 $ 800,000 560,000 240,000 122,000 118,000 52,000 $ 66,000 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 North $ 600,000 480,000 120,000 61,000 $ 59,000 < Prev 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.) South $ 200,000 ‒‒‒ 2 of 2 www ‒‒‒…
Problem 22-3B Departmental income statements P3 Bonanza has two operating departments (Movies and Video Games) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Departmental Income Statements Sales salaries Supplies used Depreciation Equipment Rent Utilities Share of office department expenses Total expenses Income (loss) Movies $600,000 420,000 180,000 49,500 4,000 4,500 41,000 7,380 56,250 162,630 $ 17,370 Required 1. Prepare a departmental contribution to overhead report (see Exhibit 22.12). 2. Should the video games department be eliminated? Explain. Video Games $200,000 154,000 46,000 21,000 1,000 3,000 9,000 1,620 18,750 54,370 $(8,370) Combined $800,000 574,000 226,000 70,500 5,000 7,500 50,000 9,000 75,000 217,000 $9,000
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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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During the year, Sokowski manufacturing earned income of 350,000,000 from total sales
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Exercise 5-1 The Effect of Changes in Activity on Net Operating Income [LO5-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 19.00 $ 12.00 Sales (8,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 254,200 155,800 $ Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 98,400 55,600 42,800 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,200 units?
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.)