Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating perioc Total Southern Northern Division Division Company $ 418,000 $ 130,880 $ 186,000 $ 79,420 $ 193,000 $ 79,130 $ 77,000 $ 36,670 $ 225,000 $ 51,750 $ 109,000 $ 42,750 Sales Variable expenses Traceable fixed expenses Common fixed expense The common fixed expenses have been allocated to the divisions on the basis of sales. The Southern Division's break-even sales is closest to:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating perioc Total Southern Northern Division Division Company $ 418,000 $ 130,880 $ 186,000 $ 79,420 $ 193,000 $ 79,130 $ 77,000 $ 36,670 $ 225,000 $ 51,750 $ 109,000 $ 42,750 Sales Variable expenses Traceable fixed expenses Common fixed expense The common fixed expenses have been allocated to the divisions on the basis of sales. The Southern Division's break-even sales is closest to:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 13E: The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as...

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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.
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?
Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%
Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net income of $40 million. Included in the income was interest expense of $2,800,000. The companys tax rate was 40%. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon?
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?
The following information was taken from the segmented income statement of Maniraguha plc, and the company's three divisions: Maniraguha, Incorporated eastern Division western Division central Division Revenues $ 1,120,000 $ 320,000 $ 355,000 $ 445,000 Variable operating expenses 626,000 176,000 195,000 255,000 Controllable fixed expenses 255,000 80,000 90,000 85,000 Noncontrollable fixed expenses 105,000 30,000 35,000 40,000 In addition, the company incurred common fixed costs of $22,500. Assume that the eastern division increases its promotion expense, a controllable fixed cost, by $23,500. As a result, revenues increased by $64,000. If variable expenses are tied directly to revenues, what is the new Eastern division segment profit margin?
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.
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 $518,750
Mnak Corporation has two divisions: the OT Products Division and the NT Products Division. The OT Products Division's divisional segment margin is P255,000 and the NT Products Division's divisional segment margin is P59,800. The total amount of common fixed expenses not traceable to the individual divisions is P163,700. What is the company's net operating income? (P314,800) P151,100 P379,200 P455,000
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14% The division's residual income is closest to:
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $39,800 and the Export Products Division's divisional segment margin is $92,200. The total amount of common fixed expenses not traceable to the individual divisions is $104,400. What is the company's net operating income (loss)? $236,400 $132,000 $27,600 ($132,000)
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…