Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total North South $ 187,500 37,500 Company Sales $ 937,500 $ 750,000 600,000 Variable expenses Contribution margin Traceable fixed expenses 637,500 150,000 71,000 $ 79,000 150,000 71,000 $ 79,000 300,000 142,000 Segment margin 158,000 Common fixed expenses 62,000 Net operating income $ 96,000 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.)
Q: Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying.…
A: Income statement is prepared by the business organizations so as to know how much amount of net…
Q: Crossfire Company segments its business into two regions-East and West. The company prepared a…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Crossfire Company segments its business into two regions-East and West. The company prepared a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: CACI Shannon Company segments its income statement into its North and South Divisions. The company's…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Crossfire Company segments its business into two regions—East and West. The company prepared a…
A: In the context of the given question, we are required to prepare a new segmented income statement…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Total fixed costs for the company = Traceable fixed expenses + Common fixed expenses = $126000 +…
Q: Assume a company with two divisions (A and B) prepared the following segmented income statement:…
A: Segment margin of A can be calculated by deducting segment margin of B from total margin.
Q: Crossfire Company segments its business into two regions-East and West. The company prepared a…
A: Break-even: It implies to a point where there are no profits earned or losses incurred. At this…
Q: Robinson Products Company has two service departments (S1 and S2) and two production departments (P1…
A: Overhead: It is the indirect cost incurred in addition to the direct costs for manufacture of…
Q: Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a…
A: Total traceable Fixed expense = Total contribution - combined segment margin
Q: Glannini Inc., which produces and sells a single product, has provVided the following contribution…
A: The income statement determines the net income of the business by subtracting the total expenses…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: The break even pint states to the amount of the revenue which is required for covering the aggregate…
Q: Cost-hierarchy income statement and allocation of corporate costs to customers. The Insurance…
A: Customer Cost Hierarchy:Customer cost hierarchy is a method that helps in the categorization of cost…
Q: Assume that Leisure Group prepared its segmented income statement as shown. Income Statement Leisure…
A: Income statement is the one that is prepared to compute the profits of the entity.
Q: Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month…
A: Introduction:- The break-even point is the moment at which a company's revenues equal its costs. The…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Breakeven point is that point of sales revenue at which business is not earning any profits or…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: 4. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases…
A: 1. Margin = Net operating income/ Sales 2. Turnover= Sales/ Operating assets 3. ROI = Margin *…
Q: Exercise 5-2
A: Solution 1 Given, Unit Selling price = UP = $24 Total Fixed cost = TFC = $24,000 Unit Variable cost…
Q: XYZ prepared a segmented income statement that included the following data for its X marketing…
A: The financial statements of the entities are prepared to be analysed and evaluated in order to…
Q: Following are sales and other operating data for the three products made and sold by Legacy…
A: Net income before elimination and net income after elimination of the product is compared to take…
Q: Piedmont Company segments its business into two regions—North and South. The company prepared the…
A: For calculating the break even sale with different products , we need use the following formula :-…
Q: Robinson Products Company has two service departments (S1 and S2) and two production departments (P1…
A: Calculation of missing information: S1 total cost allocation to P2 = 100% - 10% - 20%…
Q: Stonebraker Corporation has provided the following contribution format income statement. All…
A: Variable expenses are those expenses that vary with the number of units sold and produced, but,…
Q: Robinson Products Company has two service departments (S1 and S2) and two production departments (P1…
A: 1) Computation of total cost of P1 and P2 using direct method is as follows:
Q: [The following information applies to the questions displayed below.] Oslo Company prepared the…
A: Solution:- Calculation of the degree of operating leverage as follows under:- Introduction:- The…
Q: Sjostrom Corporation has provided the following contribution format income statement. Assume that…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Formula: Break Even Sales = Fixed Costs Contribution Margin % Contribution Margin % =…
Q: Crossfire Company segments its business into two regions—East and West. The company prepared a…
A: The question is based on the concept of Cost Accounting.
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of Operating Leverage - It measures the how much operating income of a company will change…
Q: Piedmont Company segments its business into two regions—North and South. The company prepared the…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: The direct operating costs of the departments (including both variable and fixed costs) are:…
A: Cost of S1 30% to P1 50% P2 20% S2 Cost of S2 40% P1 40% P2 20% S1 Orginal cost of service…
Q: Crossfire Company segments its business into two regions-East and West. The company prepared a…
A: Break even point in dollars Fixed cost / PV ratio 1. Company wide break even point Computation of…
Q: Income Statements Segmented by Territory Script, Inc., has two product lines. The September income…
A: Answer a) Explanations:
Q: Dukko Company has 3 lines of businesses, each of which is a significant segment. Company sales…
A: Segment profit: It is often defined as a significant measure that is used by the companies to…
Q: Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March,…
A: An income statement is a statement prepared under the financial statements it shows the various…
Q: Crossfire Company segments its business into two regions-East and West. The company prepared a…
A: Breakeven point/ Breakeven Sales Revenue: It is the point of sales where no profit and no loss are…
Q: Piedmont Company segments its business into two regions—North and South. The company prepared the…
A: Break even point is the level of sales at which the company earns no profits and incurs no losses…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Break even point is the point which evaluates as well as examine the margin of safety for the…
Q: Crossfire Company segments its business into two regions—East and West. The company prepared a…
A: In this question, there are multiple questions but we solved only the first three questions as per…
Q: Prepare a contribution margin format income statement; answer what-ifquestions Shown here is an…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: Income Statements Segmented by Territory Script, Inc., has two product lines. The September income…
A: Income Statement: It is the core financial statement which records all the expenses and incomes to…
Q: Whirly Corporation’s most recent income statement is shown below:Total Per UnitSales (10,000 units)…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: The following data are available for the Valentine Corporation for a recent month: Product A Product…
A: Answer) Calculation of Weighted Average Contribution Margin Ratio Product A Product B…
Q: Segmented Income Statement Shannon Company segments its income statement into its North and South…
A: Income statement is a financial statement that reports revenues and expenses generated from business…
Q: Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement,…
A: An income statement is a financial statement that represents the financial performance of the…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Breakeven point is the point where the entity earns normal profit i.e. no profit and no loss. This…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?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 $ 825,000 $ 550,000 $ 275,000 Variable expenses 495,000 385,000 110,000 Contribution margin 330,000 165,000 165,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 174,000 $ 87,000 $ 87,000 Common fixed expenses 69,000 Net operating income $ 105,000 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.) 1. Dollar sales for company to break-even 2. Dollar sales for North…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 $ 915,000 $ 610,000 $ 305,000 Variable expenses 732,000 518,500 213,500 Contribution margin 183,000 91,500 91,500 Traceable fixed expenses 111,000 51,000 60,000 Segment margin 72,000 $ 40,500 $ 31,500 Common fixed expenses 60,000 Net operating income $ 12,000 Required: 1. 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? 2. 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?
- 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 $ 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…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.B. Considering the following information, please prepare income statements using both traditional and contribution formats Items Amount (Tk.) Sales 7,50,000.00 Direct materials 2,47,000.00 Direct wages 87,000.00 Salary 36,000.00 Factory Rent 40,000.00 Electricity 12,600.00 Depreciation 28,000.00 Insurance 22,000.00 Utilities 27,000.00 Conveyance 24,000.00
- Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporationSpein Company is a diversified company that discloses supplemental financial information on its segments. The following information is available for 2019: Sales $)( Traceable costs ($) Allocable costs ($) Segment X 400,000 225,000 Segment Y 300,000 240,000 Segment Z 200,000 135,000 Total 900,000 600,000 150,000 Allocable costs are assigned based on the ratio of a segment’s income before allocable costs to total income before allocable costs. This is an appropriate method of allocation. Segment Y’s profit for 2019is ____________________.A. 32,400 Small; 8,100 Medium; 1,620 LargeB. 34,808 Small; 8,700 Medium; 1,740 LargeC. 37,010 Small; 9,250 Medium; 1,850 LargeD. 38,505 Small; 9,625 Medium; 1,925 LargePrepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
- The following information appeared in the annual financial statements of Hitashi Projects Limited:Statement of Comprehensive Income for the year ended 31 December 2019RRevenue 1 250 000Direct costs (786 000)Gross profit 464 000Operating expenses (124 000)Operating profit 340 000Interest expense (15 000)Profit before tax 325 000Income tax (97 500)Profit after tax 227 500Statement of Financial Position as at 31 December 2019Assets RNon-current assets 314 000Current assets 386 000Total assets 700 000Equity and liabilitiesShareholders’ equity 350 000Non-current liabilities 205 000Current liabilities 145 000Total equity and liabilities 700 000Note• Current assets (R386 000) include accounts receivable of R160 000, inventories of R80000 and cash of R146 000.• Inventories as at 31 December 2018 amounted to R130 000.• Current liabilities comprise accounts payable only.• All direct costs and revenues are on credit.Required:Calculate the following ratios using the information provided above.…The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual incomeThe information provided below was taken from the records of Chotoo Projects for the financialyear ended 31 May 2020.Extract of statement of comprehensive income for the year ended 31 May 2020RRevenue 480 000Direct costs 240 000Rent income 150 000Advertising 4 800Salaries and wages 90 000Rates and taxes 1 200Other operating expenses 80 000Additional information1. Revenue is calculated as direct cost plus 25%.2. Revenue is divided equally each month. Revenue is expected to increase by 18% for thefinancial year ending 31 May 2021.POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDARREGENT BUSINESS SCHOOL (RBS) January 2021 173. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtorsnormally pay their accounts as follows:• 40% in the month of the invoice, and these debtors are entitled toa 5% discount;• 55% one month after the invoice;The balance is usually written off as bad debts.4. Purchases for June and July are expected to be 30…