TB MC Qu. 7-87 Gullnson Corporation has two dlvislons: Divlslon ...Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below.Total Division DivisionCompany$591,000 $222,000 $369, 000275,580ABSalesVariable expensesContribution marginTraceable fixed expenses113, 220162, 360315,420195,000108,78066,000206,640129,000Segment margin120,420 $ 42,780 $ 77,640Common fixed expenses65,010Net operating income$ 55,410The break-even in sales dollars for Division A is closest to: (Round your Intermedlate calculatlons to 2 decimal places.)Multiple Cholce$134,694$184,531$487179< Prev15 of 36Next >1:0673°F Mostly sunny10/20/here to searchDELL

Here in this question, we are required to calculate break even point for Division A. Break even…

Answered: Gulinson Corporation has two divisions:…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.8E: Corrections to service department charges Panda Airlines Inc. has two divisions organized as profit...

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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?
Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30. 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded The bases to be used in allocating expenses, together with other essential information, are as follows a.Advertising expense—incurred al headquarters, charged back to divisions on the basis of usage: Action Sports Division. $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense—charged hack lo divisions at a charge rale of $18.50 per bill of lading: Action Sports Division, 14.000 bills of lading; Team Sports Division. 21.400 bills of lading. C. Accounts receivable collection expense—incurred al headquarters, charged back to divisions at a charge rate of $9-00 per invoice: Action Sports Division. 32.000 sales invoices; Team Sports Division, 12.500 sales invoices. d. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Action Sports Division. 120.000 square feet; Team Sports Division. 80.000 square feet. Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division. Provide supporting schedules for determining service department charges.
Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, 375,000; Summer Sports Division, 715,000. b. Transportation expenseallocated to divisions at a rate of 4.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 30,500 bills of lading. c. Accounts receivable collection expenseincurred at headquarters, allocated to divisions at a rate of 1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices. d. Warehouse expenseallocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Provide supporting computations for support department allocations.
Corrections to service department charges Panda Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared The service department charge rate for the service department costs was based on revenues. The following additional information is available a.Does the operating income for the two divisions accurately measure performance? b.Using service charge rates for service department charges, correct the divisional income statements.
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division QSales $ 517,000 $ 156,000 $ 361,000 Variable expenses 255,960 82,680 173,280 Contribution margin 261,040 73,320 187,720 Traceable fixed expenses 171,000 49,000 122,000 Segment margin 90,040 $ 24,320 $ 65,720 Common fixed expenses 87,890 Net operating income $ 2,150 The break-even in sales dollars for Division Q is closest to:
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $587,000 $172,000 $415,000 Variable expenses 376,090 98,040 278,050 Contribution margin 210,910 73,960 136,950 Traceable fixed expenses 105,290 30,870 74,420 Segment margin 105,620 $ 43,090 $ 62,530 Common fixed expenses 68,550 Net operating income $ 37,070 The break-even in sales dollars for Division Q is closest to:
GREEN COMPANY has two divisions: Del Sur Division and Del Norte Division. The following data are for the most recent operating period: Total Company Del Sur Division Del Norte DivisionSales P 418,000 P 193,000 P 225,000 Variable expenses P 130,880 P 79,130 P 51,750 Traceable fixed expenses P 186,000 P 77,000 P 109,000 Common fixed expense P 79,420 P 36,670 P 42,750 The bookkeeper allocated common fixed expenses to the divisions on the basis of sales. Required: a. What is the company's overall break-even sales? b. Determine the break-even point for Del Sur Division c. Determine the break-even point for Del Norte Division.
The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom
mcqs: 1) Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: Total Company Southern Division Northern Division Sales $ 418,000 $ 193,000 $ 225,000 Variable expenses $ 130,880 $ 79,130 $ 51,750 Traceable fixed expenses $ 186,000 $ 77,000 $ 109,000 Common fixed expense $ 79,420 $ 36,670 $ 42,750 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: A $114,341 B $328,299 C $272,067 D $386,408 2) Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 395,000 Variable expenses 197,500 Contribution margin 197,500 Fixed expenses 119,000 Net operating income $ 78,500 What is total contribution margin if sales volume increases by 20%? A $94,200 B $237,000 C $62,800…
Corrections to Service Department Charges for a Service Company Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: Wild Sun Airlines Inc.Divisional Income StatementsFor the Year Ended December 31, 20Y9 Passenger Division Cargo Division Revenues $3,025,000 $3,025,000 Operating expenses 2,450,000 2,736,000 Income from operations beforeservice department charges $575,000 $289,000 Less service department charges: Training $125,000 $125,000 Flight scheduling 108,000 108,000 Reservations 151,200 384,200 151,200 384,200 Income from operations $190,800 $(95,200) The service department charge rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department charges to each division were also the same. The following additional…
Suresh Company reports the following segment (department) income results for the year. Department M Department N Department O Department P Department T Total Sales $ 77,000 $ 39,000 $ 70,000 $ 56,000 $ 38,000 $ 280,000 Expenses Avoidable 14,800 42,400 21,600 19,000 46,800 144,600 Unavoidable 55,800 18,600 5,200 43,200 16,800 139,600 Total expenses 70,600 61,000 26,800 62,200 63,600 284,200 Income (loss) $ 6,400 $ (22,000) $ 43,200 $ (6,200) $ (25,600) $ (4,200) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
7. Vivera Corp. has two divisions, the Daleta division and the Alpine division. The Daleta divisionhas a sales of P620,000, variable expenses of P350,000 and traceable fixed expenses ofP229,200. The total amount of common fixed costs not traceable to individual divisions isP122,000. What is the company’s net operating income? 8. Basaha Co.’s accounts receivable were P430,000 at the beginning and P480,000 at theend of the year. Cash sales were P175,000 for the year. The accounts receivable turnoverwas 5. How much is the company’s total sales for the year? 9. Gurapa uses an imputed interest rate of 13% in the calculation of residual income.Division Tiffey, which is part of Gurapa had invested capital of P1,200,000 and an ROIof 16%. On the basis of this information, what was Tiffey division residual income? Solution pls 7 8 9

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