Rundle Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions RUNDLE COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $164,000 (122,000) (17,000) 25,000 (37,000) (4,000) $ (16,000) $ 106,000 $ 252,000 (72,000) (24,000) 156,000 (39,000) (11,000) $ 247,000 (91,000) (32,000) 124,000 (27,000) 0 $ 97,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A

Rundle Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions RUNDLE COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $164,000 (122,000) (17,000) 25,000 (37,000) (4,000) $ (16,000) $ 106,000 $ 252,000 (72,000) (24,000) 156,000 (39,000) (11,000) $ 247,000 (91,000) (32,000) 124,000 (27,000) 0 $ 97,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 3CE

See similar textbooks

Related questions

Q: Statement of Cash Flows–Indirect Method The comparative balance sheet of Merrick Equipment Co. for…

A: Cash flows statement is prepared to present the cash generated or used under various activities of a…

Q: Preparation of the statement of changes in stockholders' equity The purpose of this exercise is to…

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are…

Q: can you provide me more clear info

A: There are five special journals namely, cash receipt journal, cash disbursement journal, sales…

Q: answer for #4 as well

A: Sales Mix Variance = Budgeted price * (Actual quantity - Revised actual quantity)Sales Quantity…

Q: Goodwill messages craft special messages that foster goodwill and convey kindness. One page answer

A: SOLUTION- Goodwill messages are used in the workplace to show a sense of kindness and friendliness.…

Q: How do you find yeild to call?

A: Yield to call is a financial term used to calculate the annual return on a callable bond if it's…

Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Please help me with all answers thanku

Rundle Company operates three segments Income statements for the segments imply that profitability could be improved if Segment
A were eliminated.
Segment
Sales
Cost of goods sold
Sales commissions
RUNDLE COMPANY
Income Statements for Year 2
Contribution margin,
General fixed operating expenses (allocation of president's salary)
Advertising expense (specific to individual divisions)
Net income (loss)
Complete this question by entering your answers in the tabs below.
$164,000
(122,000)
(17,000)
25,000
(37,000)
(4,000)
$ (16,000)
Required A Required B
Prepare a schedule of relevant sales and costs for Segment A.
Relevant Revenue and Cost Items for Segment A
B
$ 252,000
(72,000)
(24,000)
156,000
(39,000)
(11,000)
$ 106,000
$ 247,000
(91,000)
(32,000)
124,000
(27,000)
0
Required
a. Prepare a schedule of relevant sales and costs for Segment A.
b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2)
the elimination of Segment A
$ 97,000

a. Prepare a schedule of relevant sales and costs for Segment A
b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2)
the elimination of Segment A
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare a schedule of relevant sales and costs for Segment A.
Relevant Revenue and Cost Items for Segment A
Effect on income
a. Prepare a schedule of relevant sales and costs for Segment A.
b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2)
the elimination of Segment A.
Required A Required B
<RA
Complete this question by entering your answers in the tabs below.
Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A
and (2) the elimination of Segment A.
RUNDLE COMPANY
Comparative Income Statements for Year 2
Keep Segment
A
Decision
Sales
Cost of goods sold
Sales commissions
Required B >
Contribution margin
General fixed operating expenses
Advertising expense
Net income
Eliminate
Segment A
4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Concept Introduction :

Step 1

Step 2

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

go.3
Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below.Required:1. Complete the "%" columns to be used in a vertical analysis of Game-On Sports’ two operating segments. Express each amount as a percentage of sales. (Round your percentage answers to 1 decimal place.) GAME-ON SPORTS Income Statement For the Year Ended December 31, 2021 Athletic Equipment Accessories Amount % Amount % Net sales $2,800,000 $3,250,000 Cost of goods sold 1,250,000 1,620,000 Gross profit 1,550,000 1,630,000 Operating expenses 650,000 700,000 Operating income 900,000 930,000 Other income (expense) 75,000 (10,000) Income before tax 975,000 920,000 Income tax expense 225,000 200,000 Net income $750,000 $720,000 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more…
practice please help with formula
Perform a vertical analysis...
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Vincenzo Corporation is a manufacturer with four product lines. Below is some financial information about each of the four product lines. Required:Calculate, explain, and determine which of the segments are reportable based on the:a. Revenue testb. Operating profit (loss) testc. Identifiable assets testd. 75 percent combined revenue test
Please do not give solution in image format thanku
Need All answer
Please provide answer of all required
TASK THREЕ: Income Statement for the year ended 31 December 2020 Edward Frankie Company Company $ Sales 100,000 80,000 Less: Cost of goods sold 60,000 50,000 Gross Profit 40,000 30,000 Less: Expenses 36.000 18,000 Net Profit 4.000 12,000 1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of the company respectively. 2. Comment the profitability of the two companies.
Revenue and expense data for Bluestem Company are as follows: Administrative expenses Cost of goods sold Income tax expense Sales Selling expenses Year 2 $37,000 350,000 40,000 800,000 150,000 Year 1 a. Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. Round percents to one decimal point. Bluestem Company Total operating expenses $ $ There was Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 $20,000 320,000 32,000 700,000 110,000 Year 2 Year 2 Amount Percent 11% % Year 1 Year 1 Amount Percent %%$ % $ %$ % % % % % % % b. Comment upon significant changes disclosed by the comparative income statement. in the cost of goods sold, and in cost of goods sold and contributed greatly to the in administrative expenses. However, the more significant in net income. in selling expenses offset the
Calculate the common size percentages and answer the questions below.