Manford Inc. has two divisions-Refrigerators and Dish Washer. Manford Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Refrigerator Dish Washer Division Division Sales $10,000,000 $5,400,000 Cost of goods sold $4,200,000 $2,660,000 Gross margin $5,800,000 $2,740,000 Allocated overhead (from corporate) $940,000 $740,000 Selling and administrative expenses $780,000 $360,000 Operating income Income tax expense (45%) Net income $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 Refrigerator Dish Washer Division Division Sales $10,000,000 $5,400,000 Cost of goods sold $4,200,000 $2,660,000 Gross margin $5,800,000 $2,740,000 Allocated overhead (from corporate) $940,000 $740,000 Selling and administrative expenses $780,000 $360,000 Operating income Income tax expense (45%) Net income $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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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