HD marketing channel team estimated Net sales and other expenses and created a profit-and-loss statement. Complete the statement using the following information (Q4-6). • Cost of goods sold (50% of net sales) • Sales salaries :6 millions 8% commission on sales • advertising and promotion : $10 millions 3% of sales for cooperative advertising allowances to retailers • freight and delivery charges (8% of sales) • Managerial salaries and expenses: 3 millions • Indirect overhead: 2 millions Profit-and-loss statement Net sales Cost of goods sold Gross Margin Marketing Expenses Sales expenses Promotion expenses $238,000,000 $119,000,000 $119,000,000 Q4 Q5 Freight Q6 General and Administrative expenses Managerial salaries and expenses Indirect overhead $3,000,000 $2,000,000 $5,000,000 $52,780,000 Net Profit before income tax

HD marketing channel team estimated Net sales and other expenses and created a profit-and-loss statement. Complete the statement using the following information (Q4-6). • Cost of goods sold (50% of net sales) • Sales salaries :6 millions 8% commission on sales • advertising and promotion : $10 millions 3% of sales for cooperative advertising allowances to retailers • freight and delivery charges (8% of sales) • Managerial salaries and expenses: 3 millions • Indirect overhead: 2 millions Profit-and-loss statement Net sales Cost of goods sold Gross Margin Marketing Expenses Sales expenses Promotion expenses $238,000,000 $119,000,000 $119,000,000 Q4 Q5 Freight Q6 General and Administrative expenses Managerial salaries and expenses Indirect overhead $3,000,000 $2,000,000 $5,000,000 $52,780,000 Net Profit before income tax

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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Salespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $514,000 $246,720 $92,520 Dix 380,000 148,200 68,400 Johnson 455,000 209,300 86,450 LaFave 531,000 297,360 106,200 226,800 88,200 Orcas 630,000 219,520 89,600 Sussman 448,000 355,000 198,800 006 Willbond Required:
Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss). Complete this question by entering your answers in the tabs below. Required A Required B A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 с $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ 107,000
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The income statement for the RUN-84979 company, an atletic shoe retailer, for the first quarter of the year is presented below: RUN-84979 Income Statement Sales $151,200 54,600 96,600 Cost of goods sold Gross margin Selling and administrative expenses Selling Administration $45,400 29,096 74,496 Net operating income $ 22,104 On average, an athletic shoe sells for $72. Variable selling expenses are $14 per athletic shoe, and the remaining selling expenses are fixed. The variable administrative expenses are 8% of sales with the remainder being fixed. How much is the total contribution margin for RUN-84979 for the first quarter?
Salespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $432,000 $211,680 $86,400 Dix 347,000 166,560 72,870 Johnson 564,000 293,280 101,520 LaFave 611,000 293,280 85,540 Orcas 588,000 199,920 76,440 Sussman 437,000 214,130 74,290 Willbond 525,000 252,000 73,500 Required: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers. Waltham Industries Inc. Salespersons' Analysis For the Year Ended…
Igloo corporation operates two stores A and B. the following relates to store B; Sales revenue 87,000 variable operating expenses 39,000 fixed expenses traceable to b and controllable by B 5,000 traceable to b and controllabe by others 22,000 The profit margin controllable by store B's manager os:
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