Complete this question by entering your answers in the tabs below.Req 1Req 2AReq 28Prepare a contribution format income statement segmented by divisions.SalesVariable expensesContribution marginTraceable fixed expensesDivisional segment marginCommon fixed expenses not traceable to divisionsNet operating loss♥Reg!DivisionEastCentral$ 440,000$ 620,000228,800 223,200TotalCompany$ 1,600,000700,400899,600211,200 396,800280,000 320,000795,000104,600 $(68,800) $ 76,800195,000(90,400)$Req 2A >West$540,000248,400291,600195,000$ 96,600 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mostrecent monthly contribution format income statement:SalesVariable expensesContribution marginFixed expensesNet operating income (loss)$ 1,600,000700,400899,600990,000$ (90,400)In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, theAccounting Department has developed the following information:SalesVariable expenses as a percentage of sales.Traceable fixed expensesEast$ 440,000$ 280,00052%DivisionCentral$ 620,000$ 320,00036%West$ 540,00046%$ 195,000Required:1. Prepare a contribution format income statement segmented by divisions.2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that itwould increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operatingincome increase (decrease) if the proposal is implemented?2-b. Would you recommend the increased advertising?

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Answered: Wingate Compa recent monthly Sales…

Business

Accounting

Wingate Compa recent monthly Sales Variable exp Contribution Fixer

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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Target profit is added to what other financial statement line item, or element, to determine the numerator in the overall target contribution margin (CM) calculation in break-even analysis? Variable costs Fixed costs Net income after taxes Operating profit
When using data from a segmented income statement, the dollar sales for a segment to break even is equal to: Multiple Choice Common fixed expenses ÷ Segment CM ratio Traceable fixed expenses ÷ Segment CM ratio Non-traceable fixed expenses ÷ Segment CM ratio (Traceable fixed expenses + Common fixed expenses) ÷ Segment CM ratio
* CengageNOWv2 | Online teachin x now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $182,500 10 Selling expenses: Sales salaries and commissions 37,900 4 Advertising 12,800 Travel 2,900 Miscellaneous selling expense 3,100 4 Administrative expenses: Office and officers' salaries 37,100 Supplies 4,600 2…
The contribution margin equals sales minus all O period O variable O fixed O product expenses.
Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
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At break even point: a) sales - contribution margin = net income or net loss b) sales - fixed expenses = variable expenses c) sales + variable expenses = contribution margin d) contribution margin + fixed expenses = net income
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000