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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- Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $176,000 on sales of $2,490,000. Division B is able to make only $25,800 on sales of $451,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) Division A Division B Profit Margin % 96 %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?Franklin Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. FRANKLIN COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions A B C $ 167,000 $ 241,000 $ 245,000 (128,000 ) (90,000) (19,000) (23,000) (79,000) (22,000) 128,000 144,000 (38,000 ) (39,000) (35,000 ) (3,000 ) (18,000 ) 0 $ (21,000 ) $ 71,000 $ 109,000 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) 20,000 Net income (loss) 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.
- Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 25% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Required sales price per unit Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print $ $ Product C 600.00 $ 300.00 270.00 1,170.00 S Done - X Product D 2,400.00 200.00 604.00 3,204.00Adams 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…Waymire LLC operates two divisions: A and B. Total sales for the company = $200,000. Division A represents 60% of total sales. Consider the following additional information: A Variable expenses 40.00% 35.00% Segment performance margin Segment margin 35.00% 40.00% 5.00% 32.00% Waymire LLC's Total Net Income = $1,600 (A & B combined) Compute Total fixed expenses for Waymire.Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales A В C $162,000 $242,000 $263,000 (84,000) (30,000) (80,000) (31,000) Cost of goods sold Sales commissions (128,000) (18,000) Contribution margin General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) 16,000 128,000 152,000 (35,000) (39,000) (33,000) (3,000) (15,000) (26,000) $ 78,000 119,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income 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 PATTERSON COMPANY Comparative Income Statements for the Year 2014 Eliminate Seg. A Keep Seg. A Decision Sales Cost of…
- Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales А В С $169,000 $243,000 $258,000 (80,000) (31,000) (121,000) (17,000) Cost of goods sold Sales commissions (88,000) (30,000) Contribution margin General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) 132,000 31,000 140,000 (34,000) (48,000) (32,000) (6,000) (11,000) (9,000) $73,000 $108,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income 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. PATTERSON COMPANY Comparative Income Statements for the Year 2014 Eliminate Seg. A Keep Seg.A Decision Sales Cost of goods…RahulFortunate Inc. is involved in retailing and has three profit centers classified as “East” and “West” and “South.” East Division sold 38,000 units during the year for a selling price of $25 each—These items cost $15 each and had $2.50 of variable selling expenses (sales commissions) that could be directly traced to the units. West Division sold 16,000 units during the year for a selling price of $27 each—These items cost $17 each and that had $3 of variable selling expenses (sales commissions) that could be directly traced to the units. South Division sold 42,000 units during the year for a selling price of $26 each—These items cost $16 each and had $2 of variable selling expenses (sales commissions) that could be directly traced to the units. Fixed Division Operating Costs that could be directly traced to the divisions were $160,000 for East Division and $95,000 for West Division, and $200,000 for South Division. There were $230,000 of Corporate Costs (which was $20,000 for…