Rakesh Clay Incorporated has two divisions, Myrtle and Laurel. The following is the segmented income statement for the previous year:Myrtle$ 576,000103,200$ 472,800Laurel$ 338,400103,200$ 235,20077,200$ 158,000172,625$ (14,625)Total$ 914,400Contribution Margin206,400$ 708,000Direct fixed costsSegment margin156,400$ 551,600459,000Common fixed costs (allocated)Net operating income (loss)$ 92,600What would Clay's income (loss) be if the Laurel Division was dropped and all common fixed costs are unavoidable?Sales revenueVariable CostsMultiple Choice$393,600 profit$65,400 loss79,200$ 393,600286,375$ 107,225HelpSave & Exi

Continue or dropping a particular segment is one of important decision to be taken. Under this, all…

Clay Incorporated has two divisions, Myrtle and Laurel. The following is the segmented income statement for the previous year: $ Myrtle $ 576,000 103,200 472,800 79,200 $ 393,600 286,375 $ 107,225 Contribution Margin Laurel $ 338,400 103, 200 $ 235,200 77,200 158,000 172,625 $(14,625) Direct fixed costs Segment margin $ Common fixed costs (allocated). Net operating income (loss) What would Clay's income (loss) be if the Laurel Division was dropped and all common fixed costs are unavoidable? Sales revenue Variable Costs Multiple Choice $393,600 profit $65,400 loss Total $ 914,400 206,400 $ 708,000 156,400 $ 551,600 459,000 $ 92,600 Help

Clay Incorporated has two divisions, Myrtle and Laurel. The following is the segmented income statement for the previous year: $ Myrtle $ 576,000 103,200 472,800 79,200 $ 393,600 286,375 $ 107,225 Contribution Margin Laurel $ 338,400 103, 200 $ 235,200 77,200 158,000 172,625 $(14,625) Direct fixed costs Segment margin $ Common fixed costs (allocated). Net operating income (loss) What would Clay's income (loss) be if the Laurel Division was dropped and all common fixed costs are unavoidable? Sales revenue Variable Costs Multiple Choice $393,600 profit $65,400 loss Total $ 914,400 206,400 $ 708,000 156,400 $ 551,600 459,000 $ 92,600 Help

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Copr. Goedl Uplift, Inc. reported the following financial data for the segmented income statements: Sales $125,000 Variable expenses $63,000 Contribution margin $62,000 Total fixed expenses $42,000 Common fixed expenses $15,000 How much are traceable fixed expenses? $83,000 $20,000 $48,000 $27,000 SUBMIT B 4 5 LO 5
Halland Ltd prepared its segmented income statement as shown above Sales Variable expense Contribution margin $ Traceable fixed expenses $ Common fixed expenses $ Net profit $ O A. $667,000 O B. $1,385,000 O C Division A Division B Company 800,000 $ 400,000 $ $673,000 $ $ Breakeven point in $ of Halland Ltd is O D. $385,000 400,000 $ 250,000 $ 160,000 $ 90,000 $ 200,000 $1,000,000 80,000 $ 120,000 $ 100,000 $ 40,000 $ 60,000 $ 480,000 520,000 350,000 200,000 150,000
The following data are taken from the records of Dove Company, a division of Oasis Corporation for the year ended December 31, 2021 Sales 120,000,000.00Less: Variable Cost and Expenses 8,000,000.00Contribution Margin 4,000,000.00Less:: Direct Fixed Cost and Expenses 1,000,000.00Segment Income 3,000,000.00 The company used an average assets of P8,000,000.00 in 2021. The cost of capital is 12% Calculate the following:1. Return on Sales2. Asset Turnover3. ROI4. Residual Income
Shirley Incorporated has three divisions, King, West and Gold. All common fixed costs are unavoidable. Following is the segmented income statement for the previous year: Sales revenue Variable costs Contribution margin Direct fixed costs Segment margin Common fixed costs (allocated) Net operating income (loss) King $ 1,040,000 312,000 $ 728,000 104,000 $ 624,000 391,000 $ 233,000 Required: a. What would Shirley's net income (loss) be if the West Division were dropped? b. What would Shirley's net income (loss) be if the Gold Division were dropped? Complete this question by entering your answers in the tabs below. Required A Required B What would Shirley's net income (loss) be if the West Division were dropped? Gold $426,000 251,340 $ 174,660 48.000 $ 126,660 159,375 $ (32,715) Total $ 2,048,000 889,260 $ 1,158,740 192,000 $ 966,740 763,000 $ 203,740
Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929
Zachary Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. ZACHARY TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 690,000 (540,000) (69,000) (89,000) (59,000) (149,000) Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $(216,000) Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $780,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $780,000? c. What is the minimurn amount of revenue required to justify continuing the operation of West Division? Complete this question by entering your answers in the tabs below.…
ume a company with two divisions (A and B) prepared the following segmented income statement: A Total 507,000 260,000 247,000 180,000 67,000 43,000 24,000 IB Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 300,000 120,000 180,000 100,000 80,000 207,000 140,000 67,000 80,000 (13,000) The dollar sales required for the company to break even is closest to: O $455,102 $355,201 $300,000 O $400,000
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total North Company $ 937,500 637,500 300,000 South $ 750,000 600,000 150,000 73,000 $ 77,000 $ 187,500 37,500 150,000 Sales Variable expenses Contribution margin Traceable fixed expenses 146,000 73,000 Segment margin 154,000 $ 77,000 Common fixed expenses 64,000 Net operating income $ 90,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even
6. .Using the algebraic method, department B's cost allocated to department C is: а. Р 7,794 b. P13,192 c. P14,021 d. P29,021
A corporation has two major business segments--A and B. The following information is given for each division for March. Revenue Variable expenses Traceable fixed expenses Allocated common expenses O $50,000. $60,000. A properly constructed segmented income statement in a contribution format would show that the segment margin of the B business segment is: $106,000. A $690,000 352,000 O $(13,000). 104,000 89,000 B $140,000 34,000 46,000 73,000
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 49,700 Net operating income $ 3,000 What is Division A’s segment margin?
Saved Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Total Company $ 750,000 450,000 300,000 144,000 North $ 500,000 350,000 150,000 72,000 South $ 250,000 100,000 150,000 72,000 $ 78,000 Segment margin 156,000 2$ 78,000 Common fixed expenses 59,000 Net operating income $ 97,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1 Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even 2 of 4 Next > < Prev