Multiple ChoiceO$0($235,140)($52,140)$30,540 Fernstrom Corporation has two divisions: East and West. Data from the most recent month appear below:Sales.Variable expensesTraceable fixed expensesMultiple ChoiceThe company's common fixed expenses total $52,140. If the company operates at exactly the break-even sales of the East Divisionand West Division, what would be the company's overall net operating income?$0East$330,000$132,000$140,000($235,140)West$144,000$ 76,320$ 43,000

Break even means where there is no profit no loss. Break even point means where the total cost and…

Answered: Fernstrom Corporation has two…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.
Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions): Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonalds contribution margin? Round to the nearest tenth of a million (one decimal place). b. What is McDonalds contribution margin ratio? Round to one decimal place. c. How much would operating income increase if same-store sales increased by 800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).
Walsh Corporation has two divisions: East and West. Data from the most recent month appear below: East West Sales $ 330,000 $144,000 Variable expenses $ 132,000 $ 76,320 Traceable fixed expenses $ 140,000 $ 43,000 The company's common fixed expenses total $52,140, If the company operates at exactly the break even sales of the East Division and West Diveion, what would be the company's overall net operating income? Select one: O a $30,540 O b. 50 OC ($52,140) Od. ($235,140)
Tyler Company has the following information pertaining to its two product lines for last year: Variable selling and admin. expenses Direct fixed expenses Sales Direct fixed selling and admin. expenses Variable expenses Operating income Common expenses are $105,000 for the year. What is the income for Tyler Company? $102,500 $120,500 $99,000 $101,000 Product A $38,000 19,500 250,000 38,000 42,000 $112,500 " Product B $31,000 34,500 210,000 22,000 31,000 $91,500
Wade Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income S O $144,681 O $217,165 O $361,623 Total Company S O $267,367 591,000 275,580 315,420 193,000 122,420 66,010 56,410 $ The break-even in sales dollars for Division A is closest to: $ Division A 232,000 123,220 108,780 68,000 40,780 Division B $ 359,000 152,360 206,640 125,000 81,640 $
8. Bode Corporation has two divisions. East and West. Data from the most recent month appears below: East West Sales Variable expenses Traceable fixed expenses. $324,000 $93,960 $156,000 $149,000 $34,270 $90,000 The company's common fixed expenses total $47,300. If the company operates at exactly the break-even sales of the East and West division, what would be the company's overall net operating income? A. $51,470 B. ($293,300) C. ($47,300) D. $0
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Multiple Choice The break-even in sales dollars for Division Q is closest to: $291,760 $211,027 $227,175 Total Company $ 510,000 312, 120 197,880 113,360 $395,760 84,520 65,040 $ 19,480 Division L $ 153,000 87,210 65,790 35, 280 $ 30,510 Division Q $ 357,000 224,910 132,090 78,080 $ 54,010
Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: Alpha $165,000 S107, 250 S 89,100 Beta Sales Variable expenses Traceable fixed expenses $283, 500 $170, 900 S 87,700 The company's common fixed expenses total $86,500. The break-even in sales dollars for Alpha Division is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multple Choice $5074 $254,571 $78,500 $24743
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Multiple Choice The break-even in sales dollars for Division Q is closest to: O $266,820 $229,647 $196,879 Total Company $485,000 320,100 164,900 107,480 $329,800 Division L Divisi $318, 209, 108, 78, $ 30, $167,000 110,220 56,780 29,400 57,420 $ 27,380 51,860 $5,560
[The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics: Sales $ 1,300,000 440,000 860,000 600,000 $ 260,000 $ 812,500 Contribution margin ratio Fixed expenses $ 260,000 80 % of sales $ 182,000 The company's minimum required rate of return is 15%. 2. What is last year's turnover? Note: Round your answer to 1 decimal place.
A company sells one product and its contribution margin ratio is 20%. The company provides the following data regarding their operation: Current sales revenue Expected sales revenue next year Expected increase in net operating income next year $2,760,000 $2,870,400 20% Assuming that there is no change in total fixed expenses, what is the net operating income for the current year? Answer: $(Click to select)
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