Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929

Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information was taken from the segmented income statement of Maniraguha plc, and the company's three divisions: Maniraguha, Incorporated eastern Division western Division central Division Revenues $ 1,120,000 $ 320,000 $ 355,000 $ 445,000 Variable operating expenses 626,000 176,000 195,000 255,000 Controllable fixed expenses 255,000 80,000 90,000 85,000 Noncontrollable fixed expenses 105,000 30,000 35,000 40,000 In addition, the company incurred common fixed costs of $22,500. Assume that the eastern division increases its promotion expense, a controllable fixed cost, by $23,500. As a result, revenues increased by $64,000. If variable expenses are tied directly to revenues, what is the new Eastern division segment profit margin?
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue 333,000 $ 233,000 $ 110,000 38,000 960, 000 303,000 201,000 Cost of goods sold Miscellaneous operating expenses Average invested assets 200,000 39,000 1,210,000 32,000 1,035,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Peak View Grand Return on Investment % %
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Retail Division Wholesale Division Operating income $ 7,500,000 $ 4,000,000 Operating assets $ 37,500,000 $ 17,500,000 Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole? Multiple Choice 20.00% 20.91% 22.86% 42.86%
Selected sales and operating data for three divisions of different structural engineering firms are glven as follows: Division A $ 16, 200,000 $ 3,240,000 24 Division B Division C $ 26, 200,000 $ 5,240,000 Sales $ 28,960,000 Average operating assets Net operating income Minimum required rate of return 24 24 7,240,000 761,400 463,360 24 655,000 12.5e% 7.00% 7.5e% Required: 1. Compute the margin, turnover, and return on Investment (ROI) for each division. 2. Compute the residual Income (loss) for each division. 3. Assume that each division is presented with an Investment opportunity that would yleld a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance Is belng measured by residual Income, which division or divislons will probably accept the opportunity?
Subject: accounting
Nicholas Technologies operates two divisions. Hardware Services and Software Services. During the current month, the two divisions reported the following results. Hardware Sales Varlable costs (as a percentage of sales) Traceable fixed costs Software $ 850, 000 45% $ 125, 000 $ 660, 000 40% $ 250,000 In addition, fixed costs common to both divisions amounted to $228,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.) NICHOLAS TECHNOLOGIES Responsibility Income Statement For the Current Month Entire Company Hardware Servicos Division Software Services Division Percent of Sales Dollars Dollars Percent of Sales Dollars Percent of Sales
Vernon transport company divides its operations into four divisions. A recent statement for its West Division folows Vernon Transport Comapny Wesy division Income Statement for year 3 Revenue $670,000 Salaries for drivers (520,000) Fuel expenses (67,000) Insurance (87,000) Division-level facility- sustaining costs (57,000) Companywide facility-sustaining costs (147,000) Net loss $208,000 Required a) By how much would cormpanywide income increase or decrease if West Division is estimated? Should West Division be eliminated? b) assume that West Division is able to increase its revenue to $760,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segemnt were eliminated. Should West Division be eliminated if revenue were $760,000? c) What is the mininum amount of revenue required to Jusify continuing the operation of West Divison? Complete this question by entering your answer in the table below. Income Would…
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below. Total Company Division L $151,000 92,110 58,890 30,870 Division Q $390,000 195,000 195,000 97,600 $ 97,400 Sales $541,000 287,110 Variable expenses Contribution margin Traceable fixed expenses 253,890 128,470 Segment margin 125,420 $2 3 Common fixed expenses 70,310 Net operating income $ 55,110 The break-even in sales dollars for Division Q is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multiple Cholce $327.250 O $195.20o S335.820 11:05 AM 自 0 W 92°F AQI 61 9/24/2021 here to search DELL
Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: + Sales Net operating income $17,950,000 $1,005,200 Average operating assets $4,890,000 The division's margin is closest to: A. 20.6% B. 5.6% C. 21.8% D. 27.4%
Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: Alpha Beta Sales $ 167,000 $ 362,300 Variable expenses $ 106,880 $ 166,300 Traceable fixed expenses $ 101,970 $ 120,900 The company’s common fixed expenses total $84,800. The break-even in sales dollars for Alpha Division is closest to: *MULTIPLE CHOICE: see image
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
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $490,000 $125,000 $365,000 Variable expenses 288,800 62,500 226,300 Contribution margin 201,200 62,500 138,700 Traceable fixed expenses 111,650 34,790 76,860 Segment margin 89,550 $ 27,710 $ 61,840 Common fixed expenses 36,910 Net operating income $ 52,640 The break-even in sales dollars for Division Q is closest to: