How much is the net operating income contributed to the company by Department A and B? WHOLE COMPANYDEPARTMENT ADEPARTMENT BVaniable Manufacturingcost of goods soldP 400,000P 180,000P220,000President's SalaryFactory Supervision100,00090,00050,00040,000CostsSales Revenue1,000,000600,000400,000Variable Selling and130,00070,00060,000Administrative CostsFixed costs controllableby others120,00070,00050,000

Net Operating Income is calculated as revenue minus operating expenses.

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How much is the net operating income contributed to the company by Department A and B?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 18E: Cost of quality and value-added/non-value-added reports for a service company A. Using the...

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Question

How much is the net operating income contributed to the company by Department A and B?

WHOLE COMPANY
DEPARTMENT A
DEPARTMENT B
Vaniable Manufacturing
cost of goods sold
P 400,000
P 180,000
P220,000
President's Salary
Factory Supervision
100,000
90,000
50,000
40,000
Costs
Sales Revenue
1,000,000
600,000
400,000
Variable Selling and
130,000
70,000
60,000
Administrative Costs
Fixed costs controllable
by others
120,000
70,000
50,000

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