The manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis). warehouse west store sales $18,920 $43,860 cost of goods sold 9,082 21,053 gross profit $9,838 $22,807 selling expenses 860 2,752 wages expense 4,730 15,351 costs allocated from corporate 2,838 4,386 Total expenses $8,428 $22,489 operating income/(loss) $ ? ? Operating Income/(loss) % ? ?
The manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis). warehouse west store sales $18,920 $43,860 cost of goods sold 9,082 21,053 gross profit $9,838 $22,807 selling expenses 860 2,752 wages expense 4,730 15,351 costs allocated from corporate 2,838 4,386 Total expenses $8,428 $22,489 operating income/(loss) $ ? ? Operating Income/(loss) % ? ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs.
After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation.
It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis).
| warehouse | west store | |
| sales | $18,920 | $43,860 |
| cost of goods sold | 9,082 | 21,053 |
| gross profit | $9,838 | $22,807 |
| selling expenses | 860 | 2,752 |
| wages expense | 4,730 | 15,351 |
| costs allocated from corporate | 2,838 | 4,386 |
| Total expenses | $8,428 | $22,489 |
| operating income/(loss) $ | ? | ? |
| Operating Income/(loss) % | ? | ? |
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