Can you please solve this problem? The following selected data relate to the Texas Division ofOut West Inc.Sales revenue: $3,580,000Uncontrollable fixed costs traceable to the division:$360,000Allocated corporate overhead: $90,000Controllable fixed costs traceable to the division: $12,000Variable costs: 35% of revenueCompute the following for the Texas Division:1. Segment contribution margin2. Controllable profit margin3. Segment profit margin

Step 1: Define Profit MarginProfit margin refers to the net income generated by the sale of goods…

Answered: The following selected data relate to…

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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Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929
XYZ prepared a segmented income statement that included the following data for its X marketing segment: Net sales $950,000 Fixed costs controllable by the X marketing segment manager $150,000 Fixed X marketing costs controllable by corporate management $250,000 Fixed manufacturing costs allocated to the X marketing segment $110,000 Variable manufacturing costs $200,000 Variable selling costs $100,000 Variable administrative costs $95,000 The best measure of the economic performance of the X marketing segment’s manager is:
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 49,700 Net operating income $ 3,000 What is Division A’s segment margin?
Accounting - Controllable Margin and Average Operating Assets
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Presented below is selected information for three regional divisions of Medina Company. Contribution margin Controllable margin Average operating assets Minimum rate of return. North $299,100 $140,000 $1,000,000 13 % Divisions West $500,700 $360,000 $1,500,000 15 % South $400,200 $208,600 $1,490,000 10 %
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division B $ 14,175,000 $ 7,087,500 $ 567,000 10% Division C $ 25,312,500 $ 5,062,500 $ 810,000 16% Sales Average operating assets Net operating income Minimum required rate of return Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Division A $ 12,150,000 $ 3,037,500 $ 607,500 14% Req 2 Division A Division…
Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period: Total Company Blue Division Gold Division Sales $ 522,000 $ 391,000 $ 131,000 Variable expenses 160,670 89,930 70,740 Contribution margin 361,330 301,070 60,260 Traceable fixed expenses 286,000 239,000 47,000 Segment margin 75,330 $ 62,070 $ 13,260 Common fixed expenses 73,080 Net operating income $ 2,250 The Gold Division's break-even sales is closest to: $102,174 $261,043 $142,043 $518,750
Subject:- accounting
The following data are available for Segment X of XYZ Company: Net income of the segment $50,000 Contribution to indirect expenses 40,000 Controllable income by manager 48,000 Assets directly used by the manager 360,000 Assets under the control of the segment 240,000 manager Determine the return on investment for evaluating 1. the income performance of the manager of Segment X and 2. the rate of income contribution of the segment. Answer:
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 50,000 Net operating income $ 10,000 What is Division A’s contribution margin? Multiple Choice $140,000 $180,000 $160,000 $200,000

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