Gough Corporation has two divisions. Domestic and Foreign. Data from the most recentmonth appears below:6.TotalCompany$668,000DomesticForeign$321,000147,660173,340134,000$ 39,340Sales...Variable expenses.Contribution margin.Traceable fixed expenses.220,530447,470335,000112,470$347,00072,870274,130201,000$ 73,130Segment margin..Common fixed expenses..73,480$ 38,990Net operating income..The break-even in sales dollars for the company as a whole is closest to:A. $502,579B. $107,216C. $436,424D. $609,794

1. BREAK EVEN POINT IN SALES : = FIXED COST / CONTRIBUTION MARGIN RATIO 2. CONTRIBUTION MARGIN…

Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears below: Total Company $668,000 220,530 447,470 335,000 112,470 Domestic $347,000 72,870 274,130 201,000 $ 73,130 Foreign $321,000 147,660 173,340 134,000 $ 39,340 Sales Variable expenses. Contribution margin.. Traceable fixed expenses. Segment margin... Common fixed expenses. 73,480 $ 38,990 Net operating income. The break-even in sales dollars for the company as a whole is closest to: A. $502,579 B. $107,216 C. $436,424 D. $609,794

Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears below: Total Company $668,000 220,530 447,470 335,000 112,470 Domestic $347,000 72,870 274,130 201,000 $ 73,130 Foreign $321,000 147,660 173,340 134,000 $ 39,340 Sales Variable expenses. Contribution margin.. Traceable fixed expenses. Segment margin... Common fixed expenses. 73,480 $ 38,990 Net operating income. The break-even in sales dollars for the company as a whole is closest to: A. $502,579 B. $107,216 C. $436,424 D. $609,794

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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The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin 540,000 Profit margin controllable by segment manager 310000 Segment profit margin 150000 On the basis of this information, Department no. 3's variable operating expenses are: Select one: a. $80,000. b. $160,000. c. $230,000. d. $390,000. e. not determinable.
The Sphinx division of Oriole Corporation generated net revenues of $12025000 and variable expenses of $7725000. If common corporate fixed costs were $1025000 and the segment margin was $1325000, what are the division’s direct fixed expenses?
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Crossfire Company segments its business into two regions—East and West. The company prepared a contribution format segmented income statement as shown below: Total Company East West Sales $ 900,000 $ 600,000 $ 300,000 Variable expenses 675,000 480,000 195,000 Contribution margin 225,000 120,000 105,000 Traceable fixed expenses 141,000 50,000 91,000 Segment margin 84,000 $ 70,000 $ 14,000 Common fixed expenses 59,000 Net operating income $ 25,000 Required: 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Use the same format as shown above. What is Crossfire’s net operating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region?
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