Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions.
Q: Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying.…
A: Income statement is prepared by the business organizations so as to know how much amount of net…
Q: Ultimo Company operates three production departments as profit centers. The following Information is…
A: Overhead are those costs that cannot be directly attributed to a unit of product.theae can be…
Q: 1. Using the data below for Ace Guitar Company: Region A Region B Sales $571,500…
A: Answer Sheet: Formula Sheet:
Q: Crossfire Company segments its business into two regions—East and West. The company prepared a…
A: In the context of the given question, we are required to prepare a new segmented income statement…
Q: Gutierrez Company has four operating division. During the first quarter of 2014, the company…
A: Formulas:
Q: Northern Stores is a retailer in the upper Midwest. The most recent monthly income statement for…
A: Marginal costing decision technique helps the management to take right decision whether to continue…
Q: Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are…
A: The answer is as fallows
Q: Prepare a schedule showing the change in revenues and expenses and the impact on the company’s…
A: Calculating the net operating income:As per text that showing the change in revenue and expenses,…
Q: Using the data below for Ace Guitar Company: Region A Region B Sales $500,000…
A: The income statement is one of the essential parts of the financial statement used for reporting the…
Q: Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's…
A: Since we answer only three subparts, we will answer the first three subparts. Please resubmit the…
Q: Suresh Company reports the following segment (department) income results for the year. Department M…
A: Avoidable costs are those costs that can be avoided by eliminating the department or by shuting down…
Q: Using the data below for the Ace Guitar Company, determine the divisional income from operations for…
A: Please see the next step for the solution
Q: Superior Markets, Incorporated, operates three stores in a large metropolitan area. A segmented…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Gutierrez Company has four operating division. During the first quarter of 2014, the company…
A: CVP format is the format wherein the costs are bifurcated into fixed and variable costs.…
Q: Using the data from Terrace Industries: District 1 District 2 Sales $300,000…
A: Given: Department expenses are proportional to the sales of each district. Sales Ratio = $300,000…
Q: Gutierrez Company has four operating division. During the first quarter of 2014, the company…
A: Formulas:
Q: Using the data below for Ace Guitar Company: Region A Region B Sales $753,500 $616,500…
A: Income is the excess of sales over expenses. In the case of income, sales revenues are always more…
Q: Crane Company has four operating divisions. During the first quarter of 2022, the company reported…
A: Here in this question, we are required to calculate incremental profit/loss. This type of analysis…
Q: Divisional income statements for the year 2020 for the two divisions of a company appear below.…
A: Computation of ROI and answer for above question are as follows
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $560,000…
A: Total Support department expenses = $235200+156800 = $392,000 Total sales = $560000+840000 =…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $638,000 $522,000…
A: Divisional income statement of the business shows all income pertaining to division and all expenses…
Q: Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company’s…
A: A segmented income statement is a management accounting document that divides out sales, cost…
Q: Media Marketing Specialists operates in three geographic segments: New England, Southeast, and…
A: All the revenues and expenses will be recorded in the financial statements of the company. The…
Q: North South East West Sales $100,000 $25,000 $75,000 $76,000 CGS $50,000 $5,000 $50,674…
A: Solution: Operating profit is also known as recurring profit or earning before interest and tax. It…
Q: Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying.…
A: Segment contribution margin = service revenue - variable expenses profit margin controllable by…
Q: Segment B $ 164,000 (128,000) (22,000) $241,000 (81,000) (28,000) $246,000 (95,000) (22,000) Sales…
A:
Q: .Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Break-even sale is the dollar sale of an entity whereby the business is neither in profits nor in…
Q: Gutierrez Company has four operating division. During the first quarter of 2014, the company…
A: Incremental analysis is a decision-making technique used by an organization to select between the…
Q: three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as…
A: 1. Variable expense are all related to the segment and incurred during production and generation of…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $877,500 $472,500 Cost of…
A:
Q: perior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption…
A: Answer 1) Particulars Amount Amount Gross Margin lost if the store is closed $(316,800)…
Q: Shown as follows is a segmented income statement for Drexel-Hall during the current month.…
A: Contribution margin is the excess of sales revenue over variable costs in the business. Segmented…
Q: Gutierrez Company has four operating division. During the first quarter of 2014, the company…
A: CVP format is the format wherein the costs are bifurcated into fixed and variable costs.…
Q: Piedmont Company segments its business into two regions—North and South. The company prepared the…
A: Break even point is the level of sales at which the company earns no profits and incurs no losses…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $638,000…
A: The income statement is used for reporting the financial performance of the company over a specific…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales $521,500…
A: Calculation of proportionate percentage of sales of each region: A Region = [$521,500 / ($521,500 +…
Q: Crossfire Company segments its business into two regions—East and West. The company prepared a…
A: In this question, there are multiple questions but we solved only the first three questions as per…
Q: Using the data below for the Ace Guitar Company: A Region B Region Sales…
A: Cost allocation refers to allocating the indirect expenses to each product. The cost is allocated as…
Q: ting income statement for the company for the last quarter is given below: Superior Markets,…
A: Income statement shows net income which is calculated as excess of sales over expenses.
Q: Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying.…
A: The formula for calculating segment margin is = sales - variable costs - avoidable fixed costs per…
Q: The following financial information is available for Beasties upper and lower divisions: Upper Lower…
A: ROI is the rate of return calculated by dividing the operating income by assts invested in business…
Q: Markets, Incorporated, operates three stores in a large metropolitan area. A segmented absorption…
A: Employment taxes refers to the form of additional tax imposed on the income of an employee which…
Q: Noventis Corporation prepared the following estimates for the four quarters of the current year:…
A: (1) The table below shows the statement of net income for each quarter of the year:
Q: Evergreen Corporation has two major divisions: Agricultural Products and Industrial Products. It…
A: The profit margin ratio is calculated as net operating income divided by net sales.
Using the data below for the Ace Guitar Company:
| A Region | B Region | |||||
| Sales | $600,000 | $900,000 | ||||
| Cost of goods sold | 228,000 | 342,000 | ||||
| Selling expenses | 144,000 | 216,000 | ||||
| Support department expenses: | ||||||
| Purchasing | $252,000 | |||||
| Payroll accounting | 168,000 |
Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.
| A Region Operating Income | $ |
| B Region Operating Income | $ |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%Using the data below for the Ace Guitar Company: A Region B Region Sales $638,000 $522,000 Cost of goods sold 242,400 198,400 Selling expenses 153,100 125,300 Support department expenses: Purchasing $194,900 Payroll accounting 129,900 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.
- Using the data below for Ace Guitar Company: Region A Region B Sales $500,000 $900,000 Cost of goods sold 200,000 300,000 Selling expenses 150,000 275,000 Service department expenses: Purchasing $90,000 Payroll accounting 30,000 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A Income: Region B Income:Using the data below for the Ace Guitar Company: A Region B Region Sales $560,000 $840,000 Cost of goods sold 212,800 319,200 Selling expenses 134,400 201,600 Support department expenses: Purchasing $235,200 Payroll accounting 156,800 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar. A Region Operating Income $fill in the blank 1 B Region Operating IncomeUsing the data below for the Ace Guitar Company: A Region B Region Sales $638,000 $522,000 Cost of goods sold 242,400 198,400 Selling expenses 153,100 125,300 Service department expenses Purchasing $194,900 Payroll accounting 129,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. a) A Region b) B Region
- Using the data below for Ace Guitar Company: Region A Region B Sales $753,500 $616,500 Cost of goods sold 286,300 234,300 Selling expenses 180,800 148,000 Service department expenses Purchasing $230,200 Payroll accounting 153,400 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A Region BUsing the data below for the Ace Guitar Company: A Region B Region Sales $521,500 $968,500 Cost of goods sold 198,200 368,000 Selling expenses 125,200 232,400 Service department expenses Purchasing $250,300 Payroll accounting 166,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. A Region $ B Region $Using the data from Terrace Industries: District 1 District 2 Sales $300,000 $600,000 Cost of goods sold 120,000 150,000 Selling expenses 55,000 75,000 Support department expenses: Purchasing $70,000 Payroll accounting 80,000 Allocate support department expenses proportional to the sales of each district. Determine the divisional operating income for Districts 1 and 2. For interim calculations, do not round. For all other amounts, round to the nearest whole dollar. District 1 Operating Income $fill in the blank 1 District 2 Operating Income $fill in the blank 2
- Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,160,000 $ 13,070,000 Cost of sales 2,691,300 6,535,000 Allocated corporate overhead 249,600 784,200 Other general and administration 553,900 3,755,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?Vernon transport company divides its operations into four divisions. A recent statement for its West Division folows Vernon Transport Comapny Wesy division Income Statement for year 3 Revenue $670,000 Salaries for drivers (520,000) Fuel expenses (67,000) Insurance (87,000) Division-level facility- sustaining costs (57,000) Companywide facility-sustaining costs (147,000) Net loss $208,000 Required a) By how much would cormpanywide income increase or decrease if West Division is estimated? Should West Division be eliminated? b) assume that West Division is able to increase its revenue to $760,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segemnt were eliminated. Should West Division be eliminated if revenue were $760,000? c) What is the mininum amount of revenue required to Jusify continuing the operation of West Divison? Complete this question by entering your answer in the table below. Income Would…Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A B C Sales $ 330,000 $ 480,000 $ 500,000 Cost of goods sold (242,000 ) (184,000 ) (190,000 ) Sales commissions (30,000 ) (44,000 ) (44,000 ) Contribution margin 58,000 252,000 266,000 General fixed operating expenses (allocation of president’s salary) (92,000 ) (92,000 ) (92,000 ) Advertising expense (specific to individual divisions) (6,000 ) (20,000 ) 0 Net income (loss) $ (40,000 ) $ 140,000 $ 174,000 Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Options for required A table are: Advertising…
