Manford Inc. has two divisions-Refrigerators and Dish Washer. Manford Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Sales Cost of goods sold Gross margin Refrigerator Dish Washer Division Division $10,000,000 $5,400,000 $4,200,000 $2,660,000 $5,800,000 $2,740,000 Allocated overhead (from corporate) $940,000 $740,000 Selling and administrative expenses $780,000 Operating income Income tax expense (45%) Net income $360,000 $4,080,000 $1,640,000 $1,836,000 $738,000 $2,244,000 $902,000 Using the segmented income statements, what is the profit margin ratio for the Refrigerator Division (to the nearest hundredth of a percent)? a. 22.44% b. 40.80% c. 58.00% d. 42.00% e. None of the answer choices is correct.

Manford Inc. has two divisions-Refrigerators and Dish Washer. Manford Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Sales Cost of goods sold Gross margin Refrigerator Dish Washer Division Division $10,000,000 $5,400,000 $4,200,000 $2,660,000 $5,800,000 $2,740,000 Allocated overhead (from corporate) $940,000 $740,000 Selling and administrative expenses $780,000 Operating income Income tax expense (45%) Net income $360,000 $4,080,000 $1,640,000 $1,836,000 $738,000 $2,244,000 $902,000 Using the segmented income statements, what is the profit margin ratio for the Refrigerator Division (to the nearest hundredth of a percent)? a. 22.44% b. 40.80% c. 58.00% d. 42.00% e. None of the answer choices is correct.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
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Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: 7. Total Company Division M $404,000 152,130 251,870 192,000 59,870 52,520 $ 7,350 Division N $181,000 65,160 115,840 87,000 28,840 23,530 $ 5,310 $223,000 86,970 136,030 105,000 31,030 Sales. Variable expenses Contribution margin. Traceable fixed expenses Segment margin... Common fixed expenses. 28,990 $ 2,040 Net operating income.. Management has allocated common fixed expenses to the division based on their sales. The break-even in sales dollars for Division N is closest to: A. $392,211 B. $258,230 C. $172,131 D. $219,656