The ABC Corporation has two divisions-East and West The divisions have the following revenues and expenses East $ 595,000 180,000 144,000 129,600 $141,400 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) The management of ABC is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided Total common corporate costs would be unaffected by this decision Given these data, the elimination of the West Division would result in an overall company net operating income poss) of Mple Choice SH1400 $45.600) 1400 West $ 445,500 236,500 201,400 187,000 5 (181,400) $40,000)

The ABC Corporation has two divisions-East and West The divisions have the following revenues and expenses East $ 595,000 180,000 144,000 129,600 $141,400 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) The management of ABC is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided Total common corporate costs would be unaffected by this decision Given these data, the elimination of the West Division would result in an overall company net operating income poss) of Mple Choice SH1400 $45.600) 1400 West $ 445,500 236,500 201,400 187,000 5 (181,400) $40,000)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2CMA

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The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of: Multiple Choice O $91,900 O $(64,100) $(142,000) East West $603,000 $ 506,000 231,000 300,000 151,500 192,000 128,600 156,000 $ 91,900 $(142,000) $(50,100)
A company has two divisions-Lawrence and Lowell. The divisions have the following revenues and expenses: Lawrence $ 570,000 238,000 172,500 128,300 $ 31,200 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) Multiple Choice The management of the company is considering the elimination of the Lowell Division. If the Lowell Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the Lowell Division would result in an overall company net operating income (loss) of $31.200 Lowell $ 478,500 327,300 $(132,000) 147,600 163,200 $ (159,600)
The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses. East West $ 489,500 258,500 $ 550,000 198,000 169,500 117,500 194,400. 141, 100 $ 65,000 $ (104,500) Sales Variable costs Traceable fixed costs Allocated common corporate costs. Net operating income (loss) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be voided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in am verall company net operating income (loss) of: Multiple Choice O $(76,100) $(39,500) $65,000 $(104,500)
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) East $ 550,000 West $489,500 198,000 169,500 117,500 $ 65,000 258,500 194,400 141,100 $ (104,500) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of: Multiple Choice $65,000 $(104,500) $(39,500) О $(76,100)
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) East $575,000 168,000 165,000 128,300 $ 113,700 West $ 507,000 301,000 193,000 157,000 $ (144,000) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of:
The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses: East West $590,000 $ 456,500 232,000 Sales Variable costs 294,300 Traceable fixed costs 144,000 151,200 $ 62,800 $(186, 700) 160, 200 188,700 Allocated common corporate costs Net operating income (loss) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in a company net operating income (loss) of: Multiple Cholce $62,800 S1125,900) S/186,700) $123,900)
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West $ 585,000 208,000 160,500 131,000 $ 456,500 255,800 172,800 185,300 Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) $ 85,500 $ (157,400) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of:
“Once a company allocates corporate costs to divisions, these costs should not be reallocated to the indirect-cost pools of the division.” Do you agree? Explain.
RelyaTech Corporation has two divisions: the Domestic Division and the Foreign Division. The RelyaTech Corporation's net operating income is $79,600. The Domestic Division's divisional segment margin is $48,600 and the Foreign Division's divisional segment margin is $171,900. (ID#26445) Q) What is the amount of the RelyaTech Corporation's common fixed expense not traceable to the individual divisions? Multiple Choice $251,500 O$140,900 $128,200 $220,500
Which of the following statements is false? (You may select more than one answer.)a. The same cost can be traceable or common depending on how the segment isdefined.b. In general, common fixed costs should be assigned to segments.c. If a company eliminates a segment of its business, the costs that were traceable tothat segment should disappear.d. If four segments share $1 million in common fixed costs and one segment is eliminated, the common fixed costs will decrease by $250,000.
The Milbam Company has two divisions - East and West. The divisions have the following revenues and expenses: East West Sales P720,000 P350,000 Variable costs 370,000 240,000 Traceable fixed costs Allocated common corporate costs Net operating income (loss) 130,000 80,000 120,000 50,000 P100,000 P(20,000) Management at Milham is pondering the elimination of the West Division since it has shown an operating loss for the past several years. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income of: P100,000 P50,000 P120,000 P80,000
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North SouthSales £900,000 £800,000Variable expenses 450,000 300,000Traceable fixed expenses 260,000 210,000Allocated common corporate expenses 240,000 190,000Operating profit (loss) £(50,000) £100,000 Management at Kelsh is pondering the elimination of North Division. If North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of North Division would result in an overall company operating profit of: