TB Problem 12-90 Midtown Retail operates a retail store... Midtown Retail operates a retail store in Kansas City, MO., and St. Louis, MO. The following information relates to the Kansas City facility: The store sold 61,800 units at $34.00 each, after having purchased the units from various suppliers for $26.50. Kansas City salespeople are paid a 1% commission based on gross sales dollars. • Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $70,000 for the year. Local property taxes amounted to $30,500. • The sales manager's $81,000 salarv is set by Kansas City's store manager. In contrast, the store manager's $150,000 salary is determined by Midtown's vice president. Kansas City incurred $14,800 of other noncontrollable costs. • Nontraceable (common) corporate overhead totaled $84,000. es Midtown's corporate headquarters is located in St. Louis, and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income statement for the Kansas City store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin.

TB Problem 12-90 Midtown Retail operates a retail store... Midtown Retail operates a retail store in Kansas City, MO., and St. Louis, MO. The following information relates to the Kansas City facility: The store sold 61,800 units at $34.00 each, after having purchased the units from various suppliers for $26.50. Kansas City salespeople are paid a 1% commission based on gross sales dollars. • Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $70,000 for the year. Local property taxes amounted to $30,500. • The sales manager's $81,000 salarv is set by Kansas City's store manager. In contrast, the store manager's $150,000 salary is determined by Midtown's vice president. Kansas City incurred $14,800 of other noncontrollable costs. • Nontraceable (common) corporate overhead totaled $84,000. es Midtown's corporate headquarters is located in St. Louis, and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income statement for the Kansas City store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

None
None
Cost of Goods Sold Allyson Ashley makes jet skis. During the year, Allyson manufactured 82,000 jet skis. Finished goods inventory had the following units: January 1 10,660 December 31 15,457 Required: 1. How many jet skis did Allyson sell during the year? units 2. If each jet ski had a product cost of $2,400, what was the cost of goods sold last year?$
q2: Junko Company manufactures financial calculators and produced 97,000 units during the year. The finished goods inventory was 1,260 units on January 1 and 1,040 units on December 31. The average unit cost is $118, what was the cost of goods manufactured and the cost of goods sold for the year? Please choose the correct option and show your calculation to validate your selection: A. $11,446,000 & $11,471,960 B. $10,839,680 & $11,446,000 C. $11,446,000 & $12,839,680 D. $10,888,240 & $11,446,000
Problem 1 - FIT, Inc., operates a chain of sporting goods stores in the southwestern United States. Each store has a store manager, several sales associates, and two or three office staff personnel. The store manager is paid $4,000 per month plus a bonus based on the amount of sales. Sales associates receive a salary of $3 per hour and a commission of 3% of their total sales. Office staff receive hourly wages. Each of the stores is leased at a monthly rent of $6,000. Required: Classify each of the following costs incurred by FIT as fixed, variable, or mixed: ____________ (a.) Office staff salaries relative to the amount of sales recorded by an individual store ____________ (b.) Store manager’s compensation, relative to the amount of sales recorded by a store ____________ (c.) Cost for bags (used to bag each customer’s purchase) and cash register tape relative to amount of sales recorded by a store ____________ (d.) Lease cost relative to the amount of sales recorded by a store…
Front Range Cabinet Distributors in Colorado Springs, Colorado, sells to its contractors with a 48% markup on cost. If the selling price for cabinets is $9,440, what is the cost to contractors based on cost? (Round your answer to the nearest cent.) Based on cost %24 Aa photos W
These salespeople are paid a minimum monthly salary or commission, whichever is greater. Find the monthly commission and gross pay. # Salesperson 15 Moser 16 Zinn 17 Schwartz 18 Flores 19 Barksdale Minimum Monthly Salary $2,100 1600 3140 850 3410 Total X Commission Monthly Rate Sales $28,000 23000 31000 10000 29100 X X X X X 8.0% 6.5% 9.25% 3.5% 12.1% = Monthly Commission Gross Pay
Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied Operation $ 35,400 Administration $ 62,400 Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Sales revenue Operation costs Administration costs Operating profit Activity-Based Income Statement Resources Used Unused Resource Capacity…
kau.3
3
shj.3
1