Required informationExercise 23-9 (Algo) Segment elimination LO P4[The following information applies to the questions displayed below]Suresh Company reports the following segment (department) income results for the year.SalesExpensesAvoidableUnavoidableTotal expensesIncome (loss)Department ODepartment PDepartment TDepartment M Department N$ 42,000$ 80,000Decision16,30057,00073,300$ 6,70044,20020,40064,600$ (22,600)Department o$ 76,000< Prev20,3005,50025,800$ 50,2006Department P$ 61,00010 of 1620,50050,20070,700$ (9,700)Exercise 23-9 (Algo) Part 1a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated?DepartmentDepartment MDepartment NDepartment T$ 41,00049,50018,90068,400$ (27,400)Next >Total$ 300,000150,800152,000302,800$ (2,800) Required informationExercise 23-9 (Algo) Segment elimination LO P4[The following information applies to the questions displayed below]Suresh Company reports the following segment (department) income results for the year.SalesExpensesAvoidableUnavoidableTotal expensesIncone (loss)Department M Department N$ 42,000$ 80,000Total increase in income16,30057,00073,300$ 6,70044,20020,40064,600$ (22,600)Department PDepartment 0$ 61,000$ 76,00020,3005,50025,800$ 50,20020,50050,20070,700$ (9,700)Department T$ 41,00049,50018,90068,400$ (27,400))Total$ 300,000150,800152,000302,800$ (2,800)Exercise 23-9 (Algo) Part 2b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.

Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T Department M Department N $ 42,000 $ 80,000 Decision 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $ (22,600) Department O $ 76,000 20,300 5,500 25,800 $ 50,200 Department P $ 61,000 20,500 50,200 70,700 $ (9,700) Department T $ 41,000 49,500 18,900 68,400 $ (27,400) Total $ 300,000 Exercise 23-9 (Algo) Part 1 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminates 150,800 152,000 302,800 $ (2,800)

Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T Department M Department N $ 42,000 $ 80,000 Decision 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $ (22,600) Department O $ 76,000 20,300 5,500 25,800 $ 50,200 Department P $ 61,000 20,500 50,200 70,700 $ (9,700) Department T $ 41,000 49,500 18,900 68,400 $ (27,400) Total $ 300,000 Exercise 23-9 (Algo) Part 1 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminates 150,800 152,000 302,800 $ (2,800)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A4. Continue or discontinue Example 2: B 420 210 210 Division Sales (1000€) Variable cost (1000£) Contribution (1000£) Fixed cost (1000£) Profit/loss (1000£) A 350 280 70 C 150 120 30 Total 920 610 310 262.5 47.5 General fixed overheads are allocated to each division on the basis of sales revenue; 60% of the total fixed costs incurred by the company are specific to each division, being split equally between them. Using relevant cost, determine, which divisions should remain open if Northampton wishes to maximise profits?
Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 1,601,000 649,870 951,130 1,046,000 $ (94,870) East $ 391,000 47% $ 269,000 Req 1 Complete this question by entering your answers in the tabs below. Req 2A Division Central $630,000 39% $ 326,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $29,000 will increase that division's sales by 12%.…
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