Owen Audio shows the following information for its two divisions for year 1. Consumer Division Commercial Division $ 1,879,200 1,127,520 293,400 130,680 Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead $ 5,950,800 3,797,100 366,840 413,820 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?

Owen Audio shows the following information for its two divisions for year 1. Consumer Division Commercial Division $ 1,879,200 1,127,520 293,400 130,680 Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead $ 5,950,800 3,797,100 366,840 413,820 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?

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

Vinubhai
Please Do not Give image format
Please do not give solution in image format thanku
1 ) Retail Division = ( 1125 / 2500 ) x 264000 = 118800 commercial division = ( 1375 / 2500 ) x 264000 = $ 145200 Using the data for Lee Company above along with the following data, determine the divisional income from operations for the Division and the Commercial Division:
9
Using the data below for the Ace Guitar Company: A Region B Region Sales $500,000 $900,000 Cost of goods sold 200,000 300,000 Selling expenses 150,000 275,000 Support department expenses: Purchasing $90,000 Payroll accounting 30,000 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to one decimal place and all other amounts to the nearest whole dollar. A Region Operating Income $fill in the blank 1 B Region Operating Income $fill in the blank 2
Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounting intern was asked to prepare segmented income statements that the company's divisional managers could use to calculate their break-even points and make decisions. She took the prior month's companywide income statement and prepared the absorption format segmented income statement shown below: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income. Total Company $ 885,000 572,300 312,700 276,000 $36,700 Commercial Residential $ 295,000 $ 590,000 418,900 153,400 141,600 171, 100 122,000 $ 19,600 154,000 $ 17,100 In preparing these statements, the intern determined that Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $73,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential…
Performance Eval - Decentralized Ops: The pictures contain all the information. Thanks!
Your Corporation has two divisions: A Division and B Division. The corporation's net operating income is $31,800. The A Division's divisional segment margin is S111,800 and the B Division's divisional segment margin is $152,800. What is the amount of the common fixed expense not traceable to the individual divisions? O $121,000 O $232,800 O $ 80,000 O $296,400