Prepare a segment margin income statement for Sheridan Optics that provides detail on both the product lines and the company as a whole. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5 125))
Q: If a tenant fixes an item in a rental and takes a deduction from the rent to reimburse themselves,…
A: Repair of the Rented Unit: Repair and deduct is the general term for when a tenant has the right to…
Q: The unadjusted trial balance of Lakota Freight Co. at March 31, 2018, the end of the year, follows:…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: What is the function of a cash budget? A capital budget?
A: Cash budget is estimated figures of cash inflow and cash outflow. It determines the net cash…
Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…
A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.
Q: Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company…
A: GIVEN Betram Chemicals Company processes a number of chemical compounds used in producing…
Q: On January 1, 2021 Richmond Leasing corporation, a public company leased an equipment with a fair…
A: The annual lease rent that should ensure a 9% return rate.
Q: Katayama Company produces a variety of products. One division makes neoprene wetsuits. Thedivision’s…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: to abose 91 101 noltotoo n 2019 2020 20210 Net income (loss) before dealings P 20,000 (P 70,000) P…
A: Net Capital Gain on 2021 ₱ 11,000 (A)
Q: . Bonds issued last year by Gowen Inc. carried a coupon rate of 7%. Bonds issued today by Gowen Inc.…
A: Solution Concept Cost of debt means the cost that the business has to pay on the debt After tax Cost…
Q: On December 31, 2019, Tyre Corporation received the DBO report from the actuary. The following…
A: Defined benefit obligation is a liability of company in form of employee benefit expense in which…
Q: Special Order, Traditional Analysis Fiorello Company manufactures two types of cold-pressed olive…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Statement 1: The importation of agricultural machineries by farmers are exempt Statement 2: The…
A: The importation of agricultural machineries by farmers are not exempt from VAT The importation of…
Q: Question 3 -------- involve achieving Cost Leadership or Differentiation within niche markets in…
A: Cost leadership is a strategy used to increase the efficiency and reduce the cost of the project.…
Q: QUESTION TWO Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive…
A: Absorption costing is one of the technique of costing being used by the business. Under this, total…
Q: QUESTION 20 In the current year, Jane's mother died and willed her a ring. The ring's fair market…
A: For tax reasons, the amount of capital investment in property is referred to as the basis. In most…
Q: Question Content Area 1. Reformulate the segmented income statement using the additional information…
A: As per our protocol we solution to the one question only but as you have asked multiple questions…
Q: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…
Q: The wood used to make furniture is a variable cost to an enterprise that manufactures and sells…
A: Cost are divided into three parts which are, (1) Variable cost (2) Fixed cost (3) Semi variable cost…
Q: On September 1, the balance of the Accounts Receivable control account in the general ledger of…
A: The subsidiary ledger for account receivables provides details for account for all customers, with…
Q: Provide the objectives for a successful audit program according to ISO9001:2015
A: An audit program according to ISO 9001:2015 is the one which involves commitments, responsibility…
Q: Annuity payments received by a taxpayer represent a part which is taxable and non taxable. Which of…
A: Annuity means a series of payments being paid or received in particular period of time and a fixed…
Q: Which of the following are Cash Outflows from Operating Activities? Check All That Apply Purchase a…
A: The question requires us to identify option which is a Cash Outflow from Operating Activity under…
Q: men and selle Ex. 6-1. Materials Cost Variances. product with the following material standards: 1…
A: The variance is the difference between standard and actual data of production.
Q: a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio.…
A: Solution:- a)Calculation of Working capital as follows under:- Working capital is the difference…
Q: How is goodwill now treated in a merger?
A: Goodwill forms a part of assets of the entity and is considered an intangible asset.
Q: Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight…
A: Introduction: Non current liability: The liabilities which are to be paid more than 1 year period of…
Q: Which of the following statements is not correct?
A: Leave monetization is actually the leave encashment which means the if there is any earned leaves…
Q: Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing.…
A: Profit Variance analysis- Gross profit analysis is determining the reasons for the change in gross…
Q: 1. If Jason accepts the special order, by how much will his income increase or decrease?
A: If Jason accepts the special order, $3,160 will his income increase.
Q: Use the following data to determine the total dollar amount of assets to be classified as current…
A: Current assets are those assets which are either in cash or can be converted into cash into short…
Q: Using the following information, prepare the journal entries to reconcile the bank statement. • Bank…
A: Deposit in Transit ,Outstanding checks and error from bank side, the entries for these transaction…
Q: Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently,…
A: Fixed costs are costs which do not change with change in activity level. Variable costs are those…
Q: Make-or-Buy, Traditional and ABC Analysis Brees, Inc., a manufacturer of golf carts, has just…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…
A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…
Q: For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of…
A: Formula: Operating income = Revenues - Expenses Deduction of expenses from revenues derives the…
Q: 1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the…
A: Introduction:- The current ratio is a liquidity ratio. It indicates firm's liquidity position. It…
Q: Special-Order Decision, Services, Qualitative Aspects Jason Rogers works full-time for UPS and runs…
A: Total number of lawns for LStar Property Management Services = No. of rental houses * 2 weeks * No.…
Q: On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for…
A: The investment income is recorded in the income statement for dividend revenue or income due to…
Q: It is possible for the postmerger P/E ratio to move in a direction opposite to that of the immediate…
A: A merger is the combination of two organizations, which eventually form a new legal entity under one…
Q: Jamela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to…
A: Cost of asset includes the invoice price less any cash discount and all other costs which are…
Q: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…
Q: Journal entries? Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: A company uses the percent of sales method to estimate bad debts expense. A company expects for 5%…
A: Lets understand the basics. In percentage of sales method, estimation is made for the bad debt in…
Q: 29. Santan Company has two products: A and B. The company uses The estimated activity-based costing…
A: Activity based costing is that costing method under which all indirect costs are being allocated or…
Q: Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures…
A: Solution:- 1)Calculation of alternative is more cost effective and by how much as follows under:-
Q: 5. Income received by the estate during the period of administration or settlement of the estate,…
A: As per the Tax code of the Philippines, Chapter X (Estates and trusts), the tax imposed by this…
Q: Parents wanted to save enough money to send their daughter to college. The parents were unable to…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: Assume that a company provided the following excerpts of information from its flexible budget…
A: Flexible budgets is that type of budget which changes or fluctuates with change in activity level.…
Q: Given the following information, compute the current ratio Cash $ 120,000 Accounts receivable…
A: Introduction: Current ratio: Division of current liabilities with current Assets derives the Current…
Q: Teal Mountain Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that…
A: Computation of Present Value of Residual Value: Guaranteed Residual Value 4000 PV of $1 @6% for…
Step by step
Solved in 2 steps
- Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The segmented income statement for a typical quarter follows. Includes depreciation. The density gauge uses a subassembly that is purchased from an external supplier for 25 per unit. Each quarter, 2,000 subassemblies are purchased. All units produced are sold, and there are no ending inventories of subassemblies. Morrill is considering making the subassembly rather than buying it. Unit-level variable manufacturing costs are as follows: No significant non-unit-level costs are incurred. Morrill is considering two alternatives to supply the productive capacity for the subassembly. 1. Lease the needed space and equipment at a cost of 27,000 per quarter for the space and 10,000 per quarter for a supervisor. There are no other fixed expenses. 2. Drop the thickness gauge. The equipment could be adapted with virtually no cost and the existing space utilized to produce the subassembly. The direct fixed expenses, including supervision, would be 38,000, 8,000 of which is depreciation on equipment. If the thickness gauge is dropped, sales of the density gauge will not be affected. Required: 1. Should Morrill Company make or buy the subassembly? If it makes the subassembly, which alternative should be chosen? Explain and provide supporting computations. 2. Suppose that dropping the thickness gauge will decrease sales of the density gauge by 10 percent. What effect does this have on the decision? 3. Assume that dropping the thickness gauge decreases sales of the density gauge by 10 percent and that 2,800 subassemblies are required per quarter. As before, assume that there are no ending inventories of subassemblies and that all units produced are sold. Assume also that the per-unit sales price and variable costs are the same as in Requirement 1. Include the leasing alternative in your consideration. Now, what is the correct decision?Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
- Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: In addition, the following sales unit volume information for the period is as follows: a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each. b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?Ivanhoe Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,100 203,300 138,600 Contribution margin 144,900 300,700 61,400 Fixed expenses 116,616 228,184 93,900 Net income $28,284 $72,516 $(32,500) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.(a)Compute current net income for Ivanhoe Company. Net income $ (b)Compute net income by product line…Shown below is a segmented income statement for Hickory Company’s Kitchen Setproduct lines:Teflon Spatula Roaster TotalSales Revenue $ 400,000 $ 200,000 $ 300,000 $ 900,000Less: Variable Expenses 225,000 120,000 250,000 595,000Contribution Margin $ 175,000 $ 80,000 $ 50,000 $ 305,000Less Direct Fixed Expenses:Machine Rent (5,000) (20,000) (50,000) (75,000)Supervision (15,000) (10,000) (20,000) (45,000)Depreciation (35,000) (10,000) (25,000) (70,000)Segment Margin $ 120,000 $ 40,000 $ (45,000) $ 115,000Refer to the information for Hickory Company above. Hickory’s management is deciding whether to keepor drop the Roaster product line. Hickory’s parquet flooring product line has a contribution margin of$50,000 (sales of $300,000 less total variable costs of $250,000). All variable costs are relevant. Relevantfixed costs associated with this line include 80% of Roaster’s machine rent and all of Roaster’ssupervision salaries.Required:1. Would you recommend the company to drop the Roaster…
- Shown below is a segmented income statement for Hickory Company’s Kitchen Set product lines: Teflon Spatula Roaster TotalSales Revenue $ 400,000 $ 200,000 $ 300,000 $ 900,000Less: Variable Expenses 225,000 120,000 250,000 595,000Contribution Margin $ 175,000 $ 80,000 $ 50,000 $ 305,000Less Direct Fixed Expenses:Machine Rent (5,000) (20,000) (50,000) (75,000)Supervision (15,000) (10,000) (20,000) (45,000)Depreciation (35,000) (10,000) (25,000) (70,000)Segment Margin $ 120,000 $ 40,000 $ (45,000) $ 115,000 Refer to the information for Hickory Company above. Hickory’s management is deciding whether to keep or drop the Roaster product line. Hickory’s parquet flooring product line…The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $ 3,000,000Variable expenses 1,500,000Contribution margin 1,500,000Fixed expenses 200,000Net operating income $ 1,300,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales increase by $53,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 10%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a…
- Shown below is a segmented income statement for Orzo Company's three laminated flooring product lines: Line Item Description Strip Plank Parquet Total Sales revenue $400,000 $200,000 $300,000 $900,000 Less: Variable expenses 225,000 120,000 250,000 595,000 Contribution margin $175,000 $ 80,000 $ 50,000 $305,000 Less direct fixed expenses: Machine rent 5,000 20,000 42,000 67,000 Supervision 15,000 10,000 20,000 45,000 Depreciation 35,000 10,000 25,000 70,000 Segment margin $120,000 $ 40,000 $ (37,000) $123,000 Orzo's management is deciding whether to keep or drop the parquet product line. Orzo's parquet flooring product line has a contribution margin of $50,000 (sales of $300,000 less total variable costs of $250,000). All variable costs are relevant. Relevant fixed costs associated with this line include $42,000 in machine rent and $5,000 in supervision salaries. 1) Which alternative is more cost effective and by how much?____Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $1,280 $185 $330 $1,795 Less: Variable expenses 1,115 45 264 1,424 Contribution margin $165 $140 $66 $371 Less direct fixed expenses: Depreciation 50 15 11 76 Salaries 95 85 116 296 Segment margin $20 $40 $(61) $-1 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different supervisor whose position would remain if the associated product were dropped. Required: CONCEPTUAL CONNECTION: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000" rather than "15".XYZ Company manufactures pillows. The Cover Division makes covers and the Assembly Division makes the finished pillows. The covers can be sold separately for P4.00. The pillows sell for P6.00. The information related to manufacturing for the most recent year is as follows: Cover Division Assembly Division Manufacturing costs of division P6,000,000 (60% variable) P1,500,000 (50% variable) Sales to external parties P4,000,000 P7,200,000 Market value of covers transferred from the Cover Division to the Assembly Division P6,000,000 Required: a. Assuming the manager of the pillows division received an offer from an outside supplier for P5,000,000 for all the covers it needs. The covers division cannot increase its sales to outside parties. What will happen to the profit of the company as a whole if the Pillows division accepts the supplier's offer?