If the company eliminates the Western Division and the Eastern Division sales increase by 10% as a result, how much will the company’s net operating income decrease?
Q: You are conducting an audit on your client's revenue cycle for the 2019 financial year. Your client…
A: Cut-off indicates that events and transactions have been recorded at the appropriate accounting…
Q: Unearned Delivery Fees of FDNACCT Co. before adjustments amounted to P80,000. % of the unearned…
A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…
Q: Prepare a general journal entry to record the payroll. The firm's general ledger contains a Wages…
A: Journal entry to record the payroll wages. Reason of debit and credit of accounts. Payroll is…
Q: Question 4 a. Business decisions rely on certain characteristics which are based on intelligent and…
A: Introduction: A business decision, also defined as an operational decision, is that any choice made…
Q: The Torre Company has the following stockholders' equity account balances in stockholders equity on…
A: calculation of common stock outstanding are as follows
Q: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in…
A: Working: Computation:
Q: Question 3 a. Risk occurs where there are several possible outcomes which can be assigned the…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: From the following particulars, prepare a balance sheet of HME Sdn Bhd as at 30Jun 2022 Capital…
A: Balance Sheet The purpose of preparing the balance sheet is to know the net position of assets…
Q: Mist, Inc. provides free meals in an employee cafeteria for its employees. The employee cafeteria…
A: An operating department oversees the production process from start to finish. The goals and…
Q: A guitar manufacturer is considering eliminating its electric guitar division because its $76,000…
A: Introduction: Revenue is calculated by multiplying this same average sales price even by the number…
Q: The journal entry to record the withdrawal of cash by the owner, to pay a personal utility bill…
A: The journal entries are prepared to record the day to day transactions on regular basis. The assets…
Q: Boston Accounting Services provides accounting services to small businesses. The following data…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with…
A: Introduction: Accounting journal entries are used to record banking transactions in the books of…
Q: MetalSheet Corporation is organized into two operating divisions (Fabrication and Finishing). The…
A: Maintenance Department costs will be charged to the operating divisions at the budgeted rate.…
Q: ce of P1,500,000. Under the terms of the sale, the automobile dealer 00,000 cash and a promissory…
A: Maturity Value : It is the estimated income on the amount of investment for a given period. It is…
Q: Accounting princippls
A: The accounting is a process to identify the business transactions and record the transactions and…
Q: The expired portion of a Prepaid Expense is
A: Prepaid expenses are an expense that is paid in advance for future years. They are not due for the…
Q: A manager in your organization just received a special order at a price that is “below cost.” The…
A: This is the case of a ‘special order’. In accounting we consider special orders as those one off…
Q: Select the best answer for the question. 4. Which one of the following accounts is both opened and…
A: In accounting, accounts are mainly classified as: Assets accounts Liabilities accounts Capital…
Q: 1. On January 1, 20X7, Sword reported net assets with a book value of $132,000. A total of $21,000…
A: Consolidation Statement In the consolidation statement the parent company acquired the subsidiary…
Q: The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase…
A: Purchase refers to a transaction that results in an acquisition of an item. This transaction…
Q: The following information on cash transactions were reported by FDNACCT Co.: Receipts from sale of…
A: Cash flow from financing activities is a part of the cash flow statement. It included transactions…
Q: Required information [The following information applies to the questions displayed below.] Peng…
A: Introduction: The accounting rate of return is the predicted rate of return on investment. A project…
Q: On March 19, 2022, FDN Company purchased merchandise from ABC Company for P90,000 invoice price, on…
A: Cash payment as of March 31, will be calculated by considering all the payments and the return. The…
Q: Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable.…
A:
Q: Methods that ignore the time value of money in capital investment appraisal include which of the…
A: Net present value – Net present value is the difference between present value of cash inflows of…
Q: Materials Labor Overhead Requirements Fixed Manufacturing Overhead is $705,000 annually. $ 19.00 $…
A: Selling price=Manufacturing cost per unit×Percentage of manufacturing cost
Q: Cullumber Publishing Co. publishes college textbooks that are sold to bookstores on the following…
A: Introduction: A journal entry is used to register a commercial transaction in a corporation's…
Q: 5.6. is wrong
A: Auditing refers to the financial statements verification or investigation in order to check the…
Q: 25. A parent company’s investment account would include an element which is representative of :…
A: In the context of the given question, we are required to find the correct option from the available…
Q: Which of the following s he violated?
A: An employee working in an organization must have some ethics and values. The employee should work…
Q: On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally…
A: Earnings per share is the amount of money per share earned, by the common stockholders of the…
Q: Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three…
A: Indirect costs are also known as overhead costs. These costs can not be allocated directly to the…
Q: The journal entry to record the payment of the monthly rent would include: a debit to Rent Expense…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: Majestic Corp has opted to seek funds by issuing stock in order to expand operations. The company's…
A: As previously stated, common stock symbolizes a company's fractional ownership. That ownership…
Q: and one year ago, compute the following ratios: (1-a) Compute the current ratio for each of the…
A: 1. Current ratio =Current asset/Current liabilities
Q: ennifer Ross, an employee of Hampton Company, worked 44 hours during the week of February 9 through…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains…
A: Lets understand the basics. Variable overhead rate variance indicates the variance between the rate…
Q: Assume that the marginal revenue product schedules of accountants and instructors are similar. Which…
A: Revenue Marginal Product (MRP) The MRP assumes that all other expenses remain constant and assists…
Q: onsider the case of Marston Manufacturing Company: Marston Manufacturing Company is considering a…
A: calculation of above requirement are as follows
Q: Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book…
A: Variable manufacturing cost is the amount of money spent on manufacturing the goods which may change…
Q: ) IDENTIFY THE REPORTING FINANCIAL STATEMENT (IS Income Stmt) OR S Balance Sheet). ) IDENTIFY…
A: Nature of Accounts : According to Traditional Approach there are three types of accounts that are:…
Q: Which if the following is not an inclusion in gross income?
A: Gross income is an income from all sources including returns , discounts and…
Q: If the owner of the business wants to see both the debit and credit entry for a specific…
A: Accounting refers to system which summarize as well as reports the financial and the business…
Q: Required: For each of the following scenarios, determine if a separate contract is created by the…
A: Accounting modification in a contract depends upon two factors Distinct Performance Obligation…
Q: Which of the following are deficiencies with this process? A junior clerk from the accounting…
A: The following deficiencies has been noted in the process: - A Junior clerk from the accounting…
Q: The following have a debit normal balance, EXCEPT O Owner's Drawings O Expenses O Liabilities O…
A: The owner’s equity is the investment made by the owner or says it is the capital of the owner. A…
Q: Describe the difference between prime costs and conversion costs?
A: Introduction: Conversion costs are charges spent when raw materials are turned into a product,…
Q: What is the value of her adjusted gross estate?
A: The adjusted gross estate is the net worth of the deceased person. The adjusted gross estate can be…
Q: When transactions are entered in a general journal, the asset accounts are listed first, followed by…
A: Assets- Assets are all the resources that a business anticipates using to produce future revenue.…
Chao, Incorporated, a service provider, has two divisions. The firm’s most recent annual contribution format segmented income statement appears below.
Total Company | Eastern Division | Western Division | |
---|---|---|---|
Sales | $ 450,000 | $ 90,000 | $ 360,000 |
Variable expenses | 243,000 | 27,000 | 216,000 |
Contribution margin | 207,000 | 63,000 | 144,000 |
Traceable fixed expenses | 100,800 | 46,800 | 54,000 |
Division segment margin | 106,200 | $ 16,200 | $ 90,000 |
Common fixed expenses | 72,000 | ||
Net operating income | $ 34,200 |
If the company eliminates the Western Division and the Eastern Division sales increase by 10% as a result, how much will the company’s net operating income decrease?
multiple choice
-
$83,700
-
$88,380
-
$90,000
-
$137,700
-
$144,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that 143,750,000 of assets have been invested in the Consumer Products Division. b. If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division?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?Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period: Total Company Blue Division Gold Division Sales $ 522,000 $ 391,000 $ 131,000 Variable expenses 160,670 89,930 70,740 Contribution margin 361,330 301,070 60,260 Traceable fixed expenses 286,000 239,000 47,000 Segment margin 75,330 $ 62,070 $ 13,260 Common fixed expenses 73,080 Net operating income $ 2,250 The Gold Division's break-even sales is closest to: $102,174 $261,043 $142,043 $518,750
- Davenport Incorporated has two divisions, Howard and Jones. The following is the segmented income statement for the past month: Howard Jones Total Sales revenue $ 800,000 $ 600,000 $ 1,400,000 Variable costs 400,000 480,000 880,000 Contribution margin $ 400,000 $ 120,000 $ 520,000 Direct fixed costs 200,000 100,000 300,000 Segment margin $ 200,000 $ 20,000 $ 220,000 Fixed costs (allocated) 150,000 150,000 300,000 Net operating income (loss) $ 50,000 $ (130,000) $ (80,000) What would Davenport's income (loss) be if the Jones Division was dropped?The operations of Smits Corporation are divided into the Child Division and the Jackson Division. Projections for the next year are as follows: ChildDivision JacksonDivision Total Sales revenue $250,000 $180,000 $430,000 Variable expenses 90,000 100,000 190,000 Contribution margin $160,000 $80,000 $240,000 Direct fixed expenses 75,000 62,500 137,500 Segment margin $85,000 $17,500 $102,500 Allocated common costs 35,000 27,500 62,500 Total relevant benefit (loss) $50,000 $(10,000) $40,000 Operating income for Smits Corporation as a whole if the Jackson Division were dropped would be a.$50,000. b.$40,000. c.$60,000. d.$22,500.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?
- Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. RUNDLE TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 620,000 Salaries for drivers (470,000 ) Fuel expenses (62,000 ) Insurance (82,000 ) Division-level facility-sustaining costs (52,000 ) Companywide facility-sustaining costs (142,000 ) Net loss $ (188,000 ) Required By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Assume that West Division is able to increase its revenue to $690,000 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 $690,000? What is the minimum amount of revenue required to justify continuing the operation of West Division?Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 750,000 $ 600,000 $ 150,000 Variable expenses 510,000 480,000 30,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 128,000 64,000 64,000 Segment margin 112,000 $ 56,000 $ 56,000 Common fixed expenses 54,000 Net operating income $ 58,000 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.)Vernon transport company divides its operations into four divisions. A recent statement for its West Division folows Vernon Transport Comapny Wesy division Income Statement for year 3 Revenue $670,000 Salaries for drivers (520,000) Fuel expenses (67,000) Insurance (87,000) Division-level facility- sustaining costs (57,000) Companywide facility-sustaining costs (147,000) Net loss $208,000 Required a) By how much would cormpanywide income increase or decrease if West Division is estimated? Should West Division be eliminated? b) assume that West Division is able to increase its revenue to $760,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segemnt were eliminated. Should West Division be eliminated if revenue were $760,000? c) What is the mininum amount of revenue required to Jusify continuing the operation of West Divison? Complete this question by entering your answer in the table below. Income Would…
- Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 50,000 Net operating income $ 70,000 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.Jay Company is divided into the South and North Divisions. Assume the data given in the table below for the South Division. What is the divisional income from operations for the South Division. S Sales $1,500,000 C Cost of good sold 825,000 Selling expenses 425,000 S Service department allocations 75,000 In Income from operations ? Group of answer choices $350,000 $175,000 $50,000 none of theseCrossfire 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 $ 910,000 $ 650,000 $ 260,000 Variable expenses 637,000 468,000 169,000 Contribution margin 273,000 182,000 91,000 Traceable fixed expenses 133,000 70,000 63,000 Segment margin 140,000 $ 112,000 $ 28,000 Common fixed expenses 56,000 Net operating income $ 84,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. What is Crossfire’s net operating income (loss) in your new segmented income statement? 5. Do you think that…