M Department Store has 5 departments- M1, M2, M3, M4, and M5. Department M5 is being evaluated using the data below for the store. Dept, M5 P500,000 300,000 P200,000 P200,000 50,000 All Others Total Sales P4,500,000 P5,000,000 2,500,000 P2,500,000 P1,000,000 500,000 500,000 P2,000,000 P500,000 Cost of Sales 2,200,000 P2,300,000 P800,000 450,000 450,000 Gross Profit Rent and services Direct salaries Advertising allocation Total expenses 50,000 P300,000 P1,700,000 P600,000 Net income P(100,000) Rent and services is a corporate committed fixed expense and is allocated evenly to the five departments. Advertising will not change regardless of the decision, and is allocated using sales revenue. M Department Store is evaluating Department M5's future. REQUIRED: 1. Comment on the following statements about Department M5: a. It is earning P100,000 in variable CM for M Department Store. b. It is earning P150,000 in direct CM for M Department Store. c. It is a P100,000 drain on the profitability of M Department Store. d. The company's overall profitability without Department M5 would be P600,000.

M Department Store has 5 departments- M1, M2, M3, M4, and M5. Department M5 is being evaluated using the data below for the store. Dept, M5 P500,000 300,000 P200,000 P200,000 50,000 All Others Total Sales P4,500,000 P5,000,000 2,500,000 P2,500,000 P1,000,000 500,000 500,000 P2,000,000 P500,000 Cost of Sales 2,200,000 P2,300,000 P800,000 450,000 450,000 Gross Profit Rent and services Direct salaries Advertising allocation Total expenses 50,000 P300,000 P1,700,000 P600,000 Net income P(100,000) Rent and services is a corporate committed fixed expense and is allocated evenly to the five departments. Advertising will not change regardless of the decision, and is allocated using sales revenue. M Department Store is evaluating Department M5's future. REQUIRED: 1. Comment on the following statements about Department M5: a. It is earning P100,000 in variable CM for M Department Store. b. It is earning P150,000 in direct CM for M Department Store. c. It is a P100,000 drain on the profitability of M Department Store. d. The company's overall profitability without Department M5 would be P600,000.

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

please help with the question that is attached as a picture. thanks
Please help me. Thankyou.
Can you please solve questions 5-15 of the problem above. Thank you.
Hi can you show how to input in excel using the pmt formula thank you so much
Please show work on how to do part 5, 6a, 6b. Thank you.
How would I calculate this problem? I just guessed on which answer made sense to me. Please help. thank you in advance.
In a thoughtful and well-written response, answer the following: If you were thinking about writing a Letter of Last Instruction, what are some specific provisions you might put into the document?
Landscape is O a. Page Layout O b. A Font Style c. Page Orientation O d. Paper Size
Explain the Golsen Rule and, in your own words, provide an example of the application of the Golsen Rule. 4 MacBook Air Fo
Goodwill messages craft special messages that foster goodwill and convey kindness. One page answer
Write a about memorandum message
Please help on parts 4 and 5. Please also show work on how to do.