Divisional Performance Analysis and EvaluationThe vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations. statement data for the past year for each division are as follows:Business DivisionConsumer DivisionSales$42,800,000$56,000,000Cost of goods sold23,500,00030,500,000Operating expenses11,424,80014,300,000Invested assets34,240,00070,000,000Required:1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations.Recycling IndustriesDivisional Income StatementsFor the Year Ended December 31, 20Y8Business DivisionConsumer DivisionSales$4Cost of goods soldGross profitOperating expensesOperating income$4

Solution: Business division Consumer division Sales 42800000 56000000 Cost of goods sold…

Answered: Business Division Consumer Division…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

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Divisional Performance Analysis and Evaluation

The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:

1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations.

statement data for the past year for each division are as follows:
Business Division
Consumer Division
Sales
$42,800,000
$56,000,000
Cost of goods sold
23,500,000
30,500,000
Operating expenses
11,424,800
14,300,000
Invested assets
34,240,000
70,000,000
Required:
1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations.
Recycling Industries
Divisional Income Statements
For the Year Ended December 31, 20Y8
Business Division
Consumer Division
Sales
$4
Cost of goods sold
Gross profit
Operating expenses
Operating income
$4

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