Gough Corporation has two divisions. Domestic and Foreign. Data from the most recentmonth appears below:6.TotalCompany$668,000DomesticForeign$321,000147,660173,340134,000$ 39,340Sales...Variable expenses.Contribution margin.Traceable fixed expenses.220,530447,470335,000112,470$347,00072,870274,130201,000$ 73,130Segment margin..Common fixed expenses..73,480$ 38,990Net operating income..The break-even in sales dollars for the company as a whole is closest to:A. $502,579B. $107,216C. $436,424D. $609,794

1. BREAK EVEN POINT IN SALES : = FIXED COST / CONTRIBUTION MARGIN RATIO 2. CONTRIBUTION MARGIN…

Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears below: Total Company $668,000 220,530 447,470 335,000 112,470 Domestic $347,000 72,870 274,130 201,000 $ 73,130 Foreign $321,000 147,660 173,340 134,000 $ 39,340 Sales Variable expenses. Contribution margin.. Traceable fixed expenses. Segment margin... Common fixed expenses. 73,480 $ 38,990 Net operating income. The break-even in sales dollars for the company as a whole is closest to: A. $502,579 B. $107,216 C. $436,424 D. $609,794

Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears below: Total Company $668,000 220,530 447,470 335,000 112,470 Domestic $347,000 72,870 274,130 201,000 $ 73,130 Foreign $321,000 147,660 173,340 134,000 $ 39,340 Sales Variable expenses. Contribution margin.. Traceable fixed expenses. Segment margin... Common fixed expenses. 73,480 $ 38,990 Net operating income. The break-even in sales dollars for the company as a whole is closest to: A. $502,579 B. $107,216 C. $436,424 D. $609,794

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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A1
The single-column CVP income statements shown below are available for Wildhorse Company and Blossom Company, Sales Variable costs Contribution margin Fixed costs Net income Wildhorse Wildhorse Co. Blossom $495,000 239,000 256,000 1000 156,000 $100,000 Blossom Co. Degree of Operating Leverage $495,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) $ 51,000 444,000 344,000 $100,000 (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-plumn CVP income statement for each company. Wildhorse Company $ tA $ Blossom Company
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Sun Corporation's contribution format income statement for July appears below: Sales $ 425,500 Variable expenses 234,025 Contribution margin 191,475 Fixed expenses 59,360 Net operating income $ 132,115 The degree of operating leverage is closest to:
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Frinner Company has two divisions, A and B, that reported the following results for October: Sales Variable expenses as a percentage of sales .... Segment margin .......... C. d. Division A £90,000 £31,000. £62,000. £93,000. £52,000 70% £2,000 Division B £150,000 If common fixed expenses were £31,000, total fixed expenses must have been a. b. 60% £23,000
A corporation has two major business segments--A and B. The following information is given for each division for March. Revenue Variable expenses Traceable fixed expenses Allocated common expenses O $50,000. $60,000. A properly constructed segmented income statement in a contribution format would show that the segment margin of the B business segment is: $106,000. A $690,000 352,000 O $(13,000). 104,000 89,000 B $140,000 34,000 46,000 73,000
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 $ 937,500 637,500 300,000 142,000 158,000 62,000 $ 96,000 North $ 750,000 600,000 150,000 71,000 $ 79,000 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. South $ 187,500 37,500 150,000 71,000 $ 79,000
Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Sales Variable expenses Contribution margin Traceable fixed expenses: Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income Sales Traceable fixed expenses: Total Company R 3,675,000 1,745,500 1,929,500 Traceable fixed expenses: R Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Total traceable fixed expenses 634,000 449,000 233,000 1,316,000 Common fixed expenses: Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines.…
6. Using a responsibility income statement Shown below is the current monthly income statement of Metro Video, by profit centers: Sales Variable Costs Contribution margin Fixed costs traceable to departments Departments responsibility margins Common fixed costs Income from operations METRO VIDEO Income Statement by Profit Centers For the Month Ended April 30, 20 Metro Video Dollars % $560,000 100 (268,800) (48) $291,200 52 (67,200) (12) $224,000 (61,600) $162,400 40 29 Equipment Sales Dollars $280,000 (198,800) $ 81,200 (25,200) Segments $56,000 % 100 71) 29 (09) Video Rentals Dollars $280,000 (70,000) $210,000 (42,000) 20 $168,000 % 100 (25) 75 (15) 60 On the basis of this information, compute the increase in monthly income from operations that may be expected to result from each of the following actions: (a) Spending $5,000 per month in advertising is expected to increase sales in the Equipment Sales Department by 35%. $_ (b) Closing the Equipment Sales Department and allowing the…