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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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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