Please do not give solution in image format thanku Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and unavoidable. Following is the incomestatement for the previous year:Sales revenueVariable costsContribution/segment marginCommon fixed costs (allocated)Net operating income (loss)Required:Granite$ 505,000192,000313,000263,000$$ 50,000Lime$ 274,000124,100$ 149,900162,250$ (12,350)a. What would Rock's income (loss) be if the Lime Division were dropped?b. What would Rock's income (loss) be if the Nina Division were dropped?Complete this question by entering your a Assessment Tool iFrame below.Required A Required BWhat would Rock's income (loss) be if the Lime Division were dropped?Nina$ 229,000100,200$ 128,800112,750$ 16,050Total$ 1,008,000416,300$ 591,700538,000$ 53,700 Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and unavoidable. Following is the incomestatement for the previous year:Sales revenueVariable costsContribution/segment marginCommon fixed costs (allocated)Net operating income (loss)Required:Granite$ 505,000192,000$313,000263,000$ 50,000a. What would Rock's income (loss) be if the Lime Division were dropped?b. What would Rock's income (loss) be if the Nina Division were dropped?Required ALime.$ 274,000124,100$ 149,900162,2507$ (12,350)Complete this question by entering your answers in the tabs below.Required BWhat would Rock's income (loss) be if the Nina Division were dropped?Nina$ 229,000100, 200$ 128,800112,750$ 16,050Total$1,008,000416,300$591,700538,000$ 53,700

Income from continuing operations: Income from continuing operations is net income earned by…

Answered: Rock Incorporated has three divisions,…

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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Shirley Incorporated has three divisions, King, West and Gold. All common fixed costs are unavoidable. Following is the segmented income statement for the previous year: Sales revenue Variable costs Contribution margin Direct fixed costs Segment margin Common fixed costs (allocated) Net operating income (loss) King $ 1,036,000 310,800. $ 725,200 103,600 $621,600 394,000 $227,600 West $ 580,000 324,800 $ 255,200 38,000 $217,200 209,625 $7,575 Required: a. What would Shirley's net income (loss) be if the West Division were dropped? b. What would Shirley's net income (loss) be if the Gold Division were dropped? Complete this question by entering your answers in the tabs below. Required A Required B What would Shirley's net income (loss) be if the West Division were dropped? Gold $430,000 253,700 $ 176,300 50,000 $ 126,300 156,375 $ (30,075) Total $2,046,000 889,300 $1,156,700 191,600 $965,100 760,000 $ 205,100
Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice O $97,725 profit $87,600 profit $383,700 profit Myrtle Laurel Total $561,600 $337,800 $899,400 177,900 175,500 353,400 383,700 162,300 546,000 285,975 172,425 458,400 $ 97,725 $(10,125) $ 87,600 $74,700 loss
The Sphinx division of Oriole Corporation generated net revenues of $12025000 and variable expenses of $7725000. If common corporate fixed costs were $1025000 and the segment margin was $1325000, what are the division’s direct fixed expenses?
CACI Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $790,000, 48%, and $15,800, respectively. The North Division's contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division's segment margin is $95,000. The company has $150,100 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Divisions Total Company North South Amount Amount Amount Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating…
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $790,000, 48%, and $15,800, respectively. The North Division’s contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division’s segment margin is $95,000. The company has $150,100 of common fixed expenses that cannot be traced to either division. Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).)
The following CVP income statements are available for Cullumber Corp. and Ivanhoe, Inc. Cullumber Ivanhoe, Inc. Corp. Sales revenue $742,000 $742,000 Variable costs 371,000 225,250 Contribution margin 371,000 516,750 Fixed costs 238,500 384,250 Net income $132,500 $132,500 (a) Your answer is correct. Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Cullumber 2.8 Ivanhoe 3.9 eTextbook and Media Assistance Used Attempts: 2 of 5 used (b) Assume that sales revenue decreases by 20%. Prepare a CVP income statement for each company. (Do not round intermediate calculations.) Cullumber Corp. Ivanhoe , Inc. 2$ $ 2$ $ (>
Asha Inc. and Samir Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Asha Inc. $2,500,000 (1,500,000) $1,000,000 (800,000) $200,000 Asha Inc. Samir Inc. Samir Inc. $4,000,000 (2,500,000) $1,500,000 (900,000) $600,000 Operating income a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. 150 75 Samir Inc. b. How much would operating income increase for each company if the sales of each increased by 30%? Dollars Percentage 30 % 30 % c. The difference in the increases of operating income is due to the difference in the operating leverages. Asha Inc.'s higher operating leverage means that its fixed costs are a smaller Inc.'s. percentage of contribution margin than are Samir
avapei Company produces three products: A, B, and C. A segmented income statement, with amounts given in thousands, follows: Direct fixed expenses include depreciation on equipment dedicated to the product lines of $20,000 for A, $120,000 for B, and $25,000 for C. None of the product line equipment can be sold, and would have to be disposed of if the product line were dropped. Required What impact on profit would result from dropping Product C? Suppose that 10 percent of the customers for Product B choose to buy from Yavapei because it offers a full range of products, including Product C. If C were no longer available from Yavapei, these customers would go elsewhere to purchase B. Now what is the impact on profit if Product C is dropped?
ABC Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $790,000, 48%, and $15,800, respectively. The North Division's contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division's segment margin is $95,000. The company has $150,100 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for ABC Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).) Total Company Amount % Amount Q Search North % Divisions Saved Amount
The following CVP income statements are available for Cullumber Corp. and Ivanhoe, Inc. Cullumber Ivanhoe, Inc. Corp. Sales revenue $742,000 $742,000 Variable costs 371,000 225,250 Contribution margin 371,000 516,750 Fixed costs 238,500 384,250 Net income $132,500 $132,500 (a) Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Cullumber Ivanhoe
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $170,300 $408,000 Variable costs 68,300 244,800 Contribution margin $102,000 $163,200 Fixed costs 51,000 27,200 Income from operations $51,000 $136,000 a. (pictured) b. (pictured) c. The difference in the (increase/decrease) of income from operations is due to the difference in the operating leverages. Beck Inc.'s (higher/lower) operating leverage means that its fixed costs are a (larger/smaller) percentage of contribution margin than are Bryant Inc.'s.
The following income statements illustrate different cost structures for two competing companies: Income Statements Number of customers (a) Sales revenue (a $200) Variable cost (ax $140) Contribution margin Fixed cost Net income Company Name Hill 200 $40,000 N/A 40,000 (28,000) $12,000 Creek 200 $40,000 (28,000) 12,000 0 $12,000 Required a. Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. b. Reconstruct Creek's income statement, assuming that it serves 400 customers when it lures 200 customers away from Hill by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below.

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