Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if SegmentA were eliminated.SegmentSalesCost of goods soldSales commissionsMUNOZ COMPANYIncome Statements for Year 2Contribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (loss)Complete this question by entering your answers in the tabs below.A$ 171,000(123,000)Required A Required BPrepare a schedule of relevant sales and costs for Segment A.Relevant Rev. and Cost items for Segment A$251,000 $256,000(91,000)(81,000)(24,000)(23,000)152,000(40,000)0136,000(17,000)31,000(34,000) (42,000)(6,000) (16,000)$ (9,000) $ 78,000Requireda. Prepare a schedule of relevant sales and costs for Segment A.b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2)the elimination of Segment A.$112,000

Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions MUNOZ COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 171,000 $251,000 $256,000 (123,000) (91,000) (17,000) (24,000) 31,000 136,000 (34,000) (42,000) (6,000) (16,000) $ (9,000) $ 78,000 (81,000) (23,000) 152,000 (40,000) 0 $112,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A

Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions MUNOZ COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 171,000 $251,000 $256,000 (123,000) (91,000) (17,000) (24,000) 31,000 136,000 (34,000) (42,000) (6,000) (16,000) $ (9,000) $ 78,000 (81,000) (23,000) 152,000 (40,000) 0 $112,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...

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The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss). Complete this question by entering your answers in the tabs below. Required A Required B A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 с $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ 107,000
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