Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures.Before transactions between the two divisions are considered, revenues and costs are as follows:RevenuesCostsCasino$31,000,00018,000,000Hotel$24,000,00012,000,000esThe casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machinesand the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed duringthe past year totaled $6,000,000. The discount coupons redeemed at the hotel totaled $1,000,000. As of the end of the year, allcoupons for the current year expired.Required:What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Enteryour answers in thousands.)CasinoHotelOperatingProfits4

To calculate the operating profits for each division considering the effects of the costs arising…

Answered: Perth Corporation has two operating…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1MAD

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Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Casino Hotel Revenues $ 32,000,000 $ 22,000,000 Costs 18,000,000 16,000,000 The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $4,800,000. The discount coupons redeemed at the hotel totaled $2,000,000. As of the end of the year, all coupons for the current year expired. Required: What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Enter your answers in thousands.)
Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs Tours $ 35,290,000 19,845,000 The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $6.2 million. The discount coupons redeemed at the resorts totaled $3.1 million. As of the end of the year, all coupons for the current year expired. Tours Resorts Resorts $ 24,290,000 17,645,000 Required: What are the operating profits for each division considering the effects of the costs arising from the joint agreement? Note: Enter your answers in thousands. Operating Profits
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he following information pertains to Sheffield Corp. and its divisions for the year ended December 31, 2021. Sales to unaffiliated customers $3960000 Intersegment sales of products similar to those sold to unaffiliated customers 910000 Interest earned on loans to other operating segments 60000 Sheffield and all of its divisions are engaged solely in manufacturing operations. Sheffield has a reportable segment if that segment's revenue exceeds $487000. $402000. $396000. $493000.
Ramco company operates in five identifiable segments, A,B,C,D and E. During the past years, sales to unaffiliated customers and intersegments sales for each segments were as follows: (Photo) Required:Applying the revenue test, determine which of the segments reportable segments are.
11. Subject :- Accounting
Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling Burdeno's inventory and maintaining inventory for future sale. Financing Division takes loan applications, packages loans into pools, and sells them in the financial markets. It also services the loans. Both divisions meet the requirements for segment disclosures under accounting rules. Sales Division had $29 million in sales last year. Costs, other than those charged by Financing Division, totaled $27 million. Financing Division earned revenues of $4.6 million from servicing loans and incurred outside costs of $5.1 million. In addition, Financing charged Operations $900,000 for loan-related fees. Sales manager complained to corporate that Financing was charging 150 percent of the commercial rate for loan-related fees and that Sales would be better off sending its buyers to an outside lender. Financing's manager replied that although commercial rates could be lower, servicing these loans is more…
Nottage Company has four separate operating segments:What revenue amount must one customer generate before it must be identified as a major customer?a. $39,600b. $42,200c. $46,500d. $49,200
Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling Burdeno's inventory and maintaining inventory for future sale. Financing Division takes loan applications, packages loans into pools, and sells them in the financial markets. It also services the loans. Both divisions meet the requirements for segment disclosures under accounting rules. Sales Division had $28 million in sales last year. Costs, other than those charged by Financing Division, totaled $26 million. Financing Division earned revenues of $4.5 million from servicing loans and incurred outside costs of $5.0 million. In addition, Financing charged Operations $900,000 for loan-related fees. Sales' manager complained to corporate that Financing was charging 150 percent of the commercial rate for loan-related fees and that Sales would be better off sending its buyers to an outside lender. Financing's manager replied that although commercial rates could be lower, servicing these loans is…

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