PROFIT CENTER: The Asian Regional Division of a large manufacturing corporation has sales of P1,200,000, cost of sales of P720,000, division manager controllable operating expenses of P100,000, other traceable division operating expenses of P44,000, and allocated fixed costs of P120,000. The cost of sales is 70% variable while the remaining 30% is depreciating expenses which related to equipment purchased before the current manager. Division traceable operating expenses are 60% fixed. How much is the contribution margin from this Division? How much is the margin that will be used to measure the performance of the manager? How much is the division margin? Assuming that there will be no changes in cost assumptions, how much would the margin provided by the Asian Regional Division be if sales increased by 10%?
PROFIT CENTER: The Asian Regional Division of a large manufacturing corporation has sales of P1,200,000, cost of sales of P720,000, division manager controllable operating expenses of P100,000, other traceable division operating expenses of P44,000, and allocated fixed costs of P120,000. The cost of sales is 70% variable while the remaining 30% is depreciating expenses which related to equipment purchased before the current manager. Division traceable operating expenses are 60% fixed. How much is the contribution margin from this Division? How much is the margin that will be used to measure the performance of the manager? How much is the division margin? Assuming that there will be no changes in cost assumptions, how much would the margin provided by the Asian Regional Division be if sales increased by 10%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
PROFIT CENTER: The Asian Regional Division of a large manufacturing corporation has sales of P1,200,000, cost of sales of P720,000, division manager controllable operating expenses of P100,000, other traceable division operating expenses of P44,000, and allocated fixed costs of P120,000. The cost of sales is 70% variable while the remaining 30% is depreciating expenses which related to equipment purchased before the current manager. Division traceable operating expenses are 60% fixed.
How much is the contribution margin from this Division?
How much is the margin that will be used to measure the performance of the manager?
How much is the division margin?
Assuming that there will be no changes in cost assumptions, how much would the margin provided by the Asian Regional Division be if sales increased by 10%?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education