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.
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Phone Earbuds Combined $ 200,000 98,000 $ 95,000 $ 295,000 58,900 102,000 36,100 156,900 138,100 20,000 8,700 28,700 1,150 450 1,600 2,100 300 2,400 7,060 3,840 10,900 2,700 1,800 4,500 10,500 4,500 43,510 19,590 $ 58,490 $ 16,510 15,000 63,100 $ 75,000 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 0 Departmental…
Brooks Company has three divisions - Northwest, South, and East. The following segmented financial information is for the most recent fiscal year ended December 31. Sales Northwest Division $22,000,000 10,000,000 4,125,000 South Division East Division $18,000,000 Cost of goods sold Allocated overhead Selling and administrative expenses 5,000,000 $8,000,000 2,000,000 1,500,000 3,200,000 7,000,000 3,375,000 5,000,000 In addition, the average operating assets totaled $15,000,000 for the Northwest Division, $6,500,000 for the South division, and $14,000,000 for the East division. Also, the cost of capital is 16 percent. The corporate tax rate is 30%. Required: You have been hired, an expert in financial analysis, to evaluate the operating performance of the three divisions. What division is performing the best? What division is performing the worst?
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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 140,000 68,600 71,400 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation Equipment Rent Utilities Share of office department expenses Total expenses Income 22,000 650 2,000 7,050 2,600 12,000 46,300 $ 25,100 Required: Prepare a departmental contribution to overhead report. Earbuds $ 95,000 58,900 36,100 7,400 350 900 3,780 2,300 5,000 19,730 $ 16,370 Combined $ 235,000 127,500 107,508 29,408 1,000 2,900 10,830 4,900 17,000 66,038 $ 41,470
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Clouthier Corporation has two divisions: Home Division and Commercial Division. The following report is for the most recent operating period: Total Company Home Division Commercial Division Sales $ 572, 000 $ 268, 000 $ 304, 000 Variable expenses $ 205, 790 $ 88, 360 $ 117, 430 Traceable fixed expenses $ 203, 000 $ 91, 000 $ 112, 000 The company's common fixed expenses total $62, 700. Required: What is the Home Division's break - even in sales dollars? What is the Commercial Division's break - even in sales dollars? What is the company's overall break - even in sales dollars? Note: Round intermediate calculations to three decimal places.
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The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: Software Hardware Corporate Division Division Total Cost of goods sold $45,655 $28,845 Direct operating $27,883 $22,356 expenses Net sales $91,379 $69,251 Interest expense $2,640 General overhead $18,941 Income tax $4,200 What is the income from operations for the Hardware Division? Select the correct answer. $18,050, $40,406, $28,845, or $46,895?
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
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