a
Introduction: SEC requires separate reporting of segments based on specific criteria, the process of determining separately reportable operating segments, for which separate supplemental disclosures is required, the process of segment reporting uses the management’s specification of these operating segments, designed by the management to evaluate these segments separately for to ascertain the financial position of the enterprise.
The reportable operating segment for B using all required tests in given segments.
b
Introduction: SEC requires separate reporting of segments based on specific criteria, the process of determining separately reportable operating segments, for which separate supplemental disclosures is required, the process of segment reporting uses the management’s specification of these operating segments, designed by the management to evaluate these segments separately for to ascertain the financial position of the enterprise.
The way a substantial portion of B’s operations are explained by its segment information using calculations in requirement “a”
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Chapter 13 Solutions
ADVANCED FIN. ACCT.(LL)-W/CONNECT
- Use the information provided by iLembe Enterprises to answer the following questions independently. The expanded contribution margin model must be used to answer questions 3.3 to 3.5. 3.1 Use the contribution margin ratio to calculate the break-even value. 3.2 Determine the selling price per unit (expressed to the nearest cent) that will enable iLembe Enterprises to break even. 3.3 Calculate the sales volume required to achieve an operating profit of R2 001 000. 3.4 Calculate the total Contribution Margin and Operating Profit/Loss if the sales price drops by 10%. 3.5 The management of iLembe Enterprises is considering an increase of R100 000 in the advertising expenditure with the expectation that the sales volume will increase by 1 000 units. Will the profitability improve? Motivate your answer with the relevant calculationsarrow_forwardGive me ansarrow_forwardContribution margin rate?arrow_forward
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