Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Sales Total Company $ 8,000,000 $ 3,300,000 $ 2,000,000 Southern $ 5,000,000 $ 2,100,000 $ 1,400,000 Northern $ 3,000,000 $ 1,200,000 $ 600,000 Contribution margin Divisional segment margin Net operating income last year for Nantor Corporation was $800,000. In last year's income statement segmented by division, what were Nantor's total common fixed expenses?

Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Sales Total Company $ 8,000,000 $ 3,300,000 $ 2,000,000 Southern $ 5,000,000 $ 2,100,000 $ 1,400,000 Northern $ 3,000,000 $ 1,200,000 $ 600,000 Contribution margin Divisional segment margin Net operating income last year for Nantor Corporation was $800,000. In last year's income statement segmented by division, what were Nantor's total common fixed expenses?

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

The following information was taken from the segmented income statement of Maniraguha plc, and the company's three divisions: Maniraguha, Incorporated eastern Division western Division central Division Revenues $ 1,120,000 $ 320,000 $ 355,000 $ 445,000 Variable operating expenses 626,000 176,000 195,000 255,000 Controllable fixed expenses 255,000 80,000 90,000 85,000 Noncontrollable fixed expenses 105,000 30,000 35,000 40,000 In addition, the company incurred common fixed costs of $22,500. Assume that the eastern division increases its promotion expense, a controllable fixed cost, by $23,500. As a result, revenues increased by $64,000. If variable expenses are tied directly to revenues, what is the new Eastern division segment profit margin?
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue 333,000 $ 233,000 $ 110,000 38,000 960, 000 303,000 201,000 Cost of goods sold Miscellaneous operating expenses Average invested assets 200,000 39,000 1,210,000 32,000 1,035,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Peak View Grand Return on Investment % %
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Retail Division Wholesale Division Operating income $ 7,500,000 $ 4,000,000 Operating assets $ 37,500,000 $ 17,500,000 Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole? Multiple Choice 20.00% 20.91% 22.86% 42.86%
Tops Corporation is organized into two divisions, Manufacturing and Marketing. Both divisions are considered to be profit centers and the two division managers are evaluated in large part on divisional income. The company makes a single product. It is fabricated in Manufacturing and then packaged and sold in Marketing. There is no intermediate market for the product. The monthly income statements, in thousands of dollars, for the two divisions follow. Production and sales amounted to 10,000 units. Manufacturing Marketing Revenues 3,000 5,000 Variable costs $ 2,400 $ 3,700 Contribution margin $ 600 $ 1,300 Fixed costs $ 500 $ 800 Divisional profit $ 100 $ 500 The company has just received an offer to buy 1,000 units of the product this month at a price of $400 per unit. The Marketing Division manager suggests that for the special order only, the transfer price be set at 50 percent of the sales price, or $200 per unit.…
[The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage Cheese ($ millions) Division Division Invested assets, beginning Invested assets, ending $2,676 2,600 2,688 $4,469 4,407 3,932 641 Sales Operating income 356 Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
Cost Department Allocations In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $64,560, and the Purchasing Department had expenses of $40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales $2,000,000 $3,250,000 $2,900,000 Number of employees: Weekly payroll (52 weeks per year) 400 250 150 Monthly payroll 80 30 10 Number of purchase requisitions per year 7,500 3,000 2,000 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential…
The vice president of operations of Scott Hall and Associates is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Category Sales Cost of goods sold Operating expenses Invested assets C. Road Bike Division $1,750,000 1,300,000 202,000 1,400,000 Mountain Bike Division $1,810,000 1,440,000 236,800 800,000 Instructions a. Prepare condensed divisional income statements for the year ended December 31, 2021, assuming that there were no service department charges. b. Using the DuPont formula for return on investment, determine the profit margin percentage, investment turnover, and return on investment for each division. (Round percentages and the investment turnover to two places behind the decimal.) If management's minimum acceptable return on investment is 10%, determine the residual income for each division. d. In your own words evaluate the performance of the…
Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: + Sales Net operating income $17,950,000 $1,005,200 Average operating assets $4,890,000 The division's margin is closest to: A. 20.6% B. 5.6% C. 21.8% D. 27.4%
Sagar
Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: Alpha Beta Sales $ 167,000 $ 362,300 Variable expenses $ 106,880 $ 166,300 Traceable fixed expenses $ 101,970 $ 120,900 The company’s common fixed expenses total $84,800. The break-even in sales dollars for Alpha Division is closest to: *MULTIPLE CHOICE: see image
Samsun company operates with two divisions, sam and sun. The results of the operations last year showed the company earning a net operating income of P468,000 while allocating P1,040,000 ccommon fixed expenses. The contribution margin of Sam was P780,000 while contribution margin ratio for sun ws 40%. Sun was able to generate sales of P3,250,000, and its segment margin was P832,000. The segment margin for sam was: A. P676,000 B. 1,508,000 C. P208,000 D. P832,000
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,357,000 $ 993,000 $ 4,741,000 Operating Income 162,200 113,700 287,400 Investment in assets 379,700 451,800 3,237,200 The return on investment (ROI) for Division X is: Multiple Choice 25.2%. 11.5%. 8.9%. 42.7%. 31.2%.