Low Carb Diet Supplement, Inc., has two divisions. Division A has a profit of $230,000 on sales of $2,120,000. Division B is able to make only $34,700 on sales of $381,000. Compute the profit margins (return on sales) for each division.
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Compute the profit margins (return on sales) for each division on accounting question
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- King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $50,000 formattress sets and $25,000 for bed frames. Return on investment (ROI) was 10% for both divisions,while asset turnover (AT) was 5 for mattress sets and 2 for bed frames. What was the amount ofoperating profit for each division?Adams Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ADAMS COMPANY Income Statements for Year 2 Segment A B C Sales $ 166,000 $ 250,000 $ 265,000 Cost of goods sold (126,000 ) (79,000 ) (77,000 ) Sales commissions (22,000 ) (23,000 ) (32,000 ) Contribution margin 18,000 148,000 156,000 General fixed operating expenses (allocation of president’s salary) (39,000 ) (50,000 ) (25,000 ) Advertising expense (specific to individual divisions) (5,000 ) (15,000 ) 0 Net income (loss) $ (26,000 ) $ 83,000 $ 131,000 Required Prepare a schedule of relevant sales and costs for Segment A. 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.Profits centers J and T are two decentralized profit centers of cool cat - candy company. Profit centre J manufactures the candy and profit centre T packages and distributes the candy at a sale price of Rs. 15 per unit. Profit centre J transfers 60% (24,00,000 units) of its output to profit centre T. The remainder being sold to outside markets. Following are the expected revenues for the year 2018 Sales Profit centre J Profit centre T 40,00, 000 Units All units received from J Variable costs Rs . 2 per unit Rs. 5 per unit Fixed costs annual Rs. 80,000 Rs. 40.000* Outside market price Rs. 7 per unit Rs. 15 per unit *does not include cost from profit centre J. Required: Calculate transfer price under each of the following transfer pricing methods: 1. cost (using variable cost) 2. Cost (using full cost) 3. Cost plus using a mark- up on full cost of 40% 4. Market price, when the market price for profit centre J's product is Rs. 7 per unit. 5. Negotiated Transfer price 6. Dual Transfer…
- Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A B C Sales $ 330,000 $ 480,000 $ 500,000 Cost of goods sold (242,000 ) (184,000 ) (190,000 ) Sales commissions (30,000 ) (44,000 ) (44,000 ) Contribution margin 58,000 252,000 266,000 General fixed operating expenses (allocation of president’s salary) (92,000 ) (92,000 ) (92,000 ) Advertising expense (specific to individual divisions) (6,000 ) (20,000 ) 0 Net income (loss) $ (40,000 ) $ 140,000 $ 174,000 Required Prepare a schedule of relevant sales and costs for Segment A. 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. Options for required A table are: Advertising…Which division is superior?Nerrod Company sells its products at $840 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Cost Driver and Rate Sales calls $ 570 per visit Order processing $ 185 per order Deliveries $ 80 per order + $0.50 per mile Sales returns $ 95 per return and $6.4 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT NINTO Number of orders 27 2 Number of parts per order 670 2,170 Sales returns: Number of returns 4 10 Number of units returned 40 50 Number of sales calls 14 10 Miles per delivery 10 20 Shipping terms FOB, Factory FOB, Destination What is Nerrod's total customer unit-level cost applicable to XBT as a customer?
- Smith Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Cost Driver and Rate $ 400 per visit Order processing Deliveries $ 100 per order Sales returns $ 50 per order + $0.50 per mile $ 60 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Number of orders Number of parts per order Sales returns: Number of returns Number of units returned (per return) XBT 10 500 NINTO 2 2,000 4 10 40 50 6 10 10 20 FOB, Factory FOB, Destination Number of sales calls Miles per delivery Shipping terms What is Smith's total sales-sustaining cost applicable to XBT as a customer? Multiple Choice $4,120. $920. ○ $6,300. ○ $6,420. о $0.Give me AnswerExpert need your help
- Based on the profit margins (returns on sales), which division is superior?Smith Company sells its products at $620 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns Cost Driver and Rate $460 per visit $ 130 per order $80 per order + $0.50 per mile $ 90 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Number of orders Number of parts per order Sales returns: Number of returns. Number of units returned (per return) Number of sales calls Miles per delivery Shipping terms What is Smith's total customer batch-level cost applicable to Ninto? XBT 16 560 4 40 12 10 FOB, Factory NINTO 2 2,060 10 50 10 20 FOB, DestinationSamsun company operates with two divisions, sam and sun. The results of the operations last year showed the company earning a net operating income of P468,000 while allocating P1,040,000 ccommon fixed expenses. The contribution margin of Sam was P780,000 while contribution margin ratio for sun ws 40%. Sun was able to generate sales of P3,250,000, and its segment margin was P832,000. The segment margin for sam was: A. P676,000 B. 1,508,000 C. P208,000 D. P832,000