The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows: BLUFF RUN GOLF COURSES Income Statement Month Ending July 31, 2018 Blue Course Black Course Gold Course Revenues Greens fees revenue $62,500 $89,000 $42,900 Outings revenue ? 6,000 27,000 Total revenue $74,300 $95,000 $69,900 Expenses Landscaping $7,800 $14,200 $6,400 Wages 43,900 ? 32,700 Repairs and maintenance 5,600 2,600 4,400 Fuel 3,100 3,000 1,980 Utilities 1,800 3,000 1,600 Total expenses $62,200 $79,000 $47,080 Operating income $12,100 $16,000 ? Question Content Area A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place. Course Blue fill in the blank e2d94c0bcf8cfe3_1% Course Black fill in the blank e2d94c0bcf8cfe3_2% Course Gold fill in the blank e2d94c0bcf8cfe3_3% B. 1. Perform a vertical analysis for each course. Round your percentages to one decimal place. Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018 Course Blue Course Black Course Gold Revenues Greens fees revenue $62,500 $89,000 $42,900 Outings revenue fill in the blank 4aed13057fa1017_1 6,000 27,000 Total revenue $74,300 $95,000 $69,900 Expenses Landscaping $7,800 fill in the blank 4aed13057fa1017_2% $14,200 fill in the blank 4aed13057fa1017_3% $6,400 fill in the blank 4aed13057fa1017_4% Wages 43,900 fill in the blank 4aed13057fa1017_5% fill in the blank 4aed13057fa1017_6 fill in the blank 4aed13057fa1017_7% 32,700 fill in the blank 4aed13057fa1017_8% Repairs and maintenance 5,600 fill in the blank 4aed13057fa1017_9% 2,600 fill in the blank 4aed13057fa1017_10% 4,400 fill in the blank 4aed13057fa1017_11% Fuel 3,100 fill in the blank 4aed13057fa1017_12% 3,000 fill in the blank 4aed13057fa1017_13% 1,980 fill in the blank 4aed13057fa1017_14% Utilities 1,800 fill in the blank 4aed13057fa1017_15% 3,000 fill in the blank 4aed13057fa1017_16% 1,600 fill in the blank 4aed13057fa1017_17% Total expenses $62200 $79000 $47080 Operating income $12,100 $16,000 $fill in the blank 4aed13057fa1017_18 Operating income % fill in the blank 4aed13057fa1017_19% fill in the blank 4aed13057fa1017_20% fill in the blank 4aed13057fa1017_21% Feedback 2. Based on a vertical analysis of each course, which accounts would you want to investigate further? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?
The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows: BLUFF RUN GOLF COURSES Income Statement Month Ending July 31, 2018 Blue Course Black Course Gold Course Revenues Greens fees revenue $62,500 $89,000 $42,900 Outings revenue ? 6,000 27,000 Total revenue $74,300 $95,000 $69,900 Expenses Landscaping $7,800 $14,200 $6,400 Wages 43,900 ? 32,700 Repairs and maintenance 5,600 2,600 4,400 Fuel 3,100 3,000 1,980 Utilities 1,800 3,000 1,600 Total expenses $62,200 $79,000 $47,080 Operating income $12,100 $16,000 ? Question Content Area A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place. Course Blue fill in the blank e2d94c0bcf8cfe3_1% Course Black fill in the blank e2d94c0bcf8cfe3_2% Course Gold fill in the blank e2d94c0bcf8cfe3_3% B. 1. Perform a vertical analysis for each course. Round your percentages to one decimal place. Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018 Course Blue Course Black Course Gold Revenues Greens fees revenue $62,500 $89,000 $42,900 Outings revenue fill in the blank 4aed13057fa1017_1 6,000 27,000 Total revenue $74,300 $95,000 $69,900 Expenses Landscaping $7,800 fill in the blank 4aed13057fa1017_2% $14,200 fill in the blank 4aed13057fa1017_3% $6,400 fill in the blank 4aed13057fa1017_4% Wages 43,900 fill in the blank 4aed13057fa1017_5% fill in the blank 4aed13057fa1017_6 fill in the blank 4aed13057fa1017_7% 32,700 fill in the blank 4aed13057fa1017_8% Repairs and maintenance 5,600 fill in the blank 4aed13057fa1017_9% 2,600 fill in the blank 4aed13057fa1017_10% 4,400 fill in the blank 4aed13057fa1017_11% Fuel 3,100 fill in the blank 4aed13057fa1017_12% 3,000 fill in the blank 4aed13057fa1017_13% 1,980 fill in the blank 4aed13057fa1017_14% Utilities 1,800 fill in the blank 4aed13057fa1017_15% 3,000 fill in the blank 4aed13057fa1017_16% 1,600 fill in the blank 4aed13057fa1017_17% Total expenses $62200 $79000 $47080 Operating income $12,100 $16,000 $fill in the blank 4aed13057fa1017_18 Operating income % fill in the blank 4aed13057fa1017_19% fill in the blank 4aed13057fa1017_20% fill in the blank 4aed13057fa1017_21% Feedback 2. Based on a vertical analysis of each course, which accounts would you want to investigate further? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 3EA: The following information is from Bluff Run Golf Courses. The company runs three courses and the...
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Question
The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:
| BLUFF RUN GOLF COURSES | ||||||
| Income Statement | ||||||
| Month Ending July 31, 2018 | ||||||
| Blue Course | Black Course | Gold Course | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,900 | |||
| Outings revenue | ? | 6,000 | 27,000 | |||
| Total revenue | $74,300 | $95,000 | $69,900 | |||
| Expenses | ||||||
| Landscaping | $7,800 | $14,200 | $6,400 | |||
| Wages | 43,900 | ? | 32,700 | |||
| Repairs and maintenance | 5,600 | 2,600 | 4,400 | |||
| Fuel | 3,100 | 3,000 | 1,980 | |||
| Utilities | 1,800 | 3,000 | 1,600 | |||
| Total expenses | $62,200 | $79,000 | $47,080 | |||
| Operating income | $12,100 | $16,000 | ? |
Question Content Area
A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.
| Course Blue | fill in the blank e2d94c0bcf8cfe3_1% |
| Course Black | fill in the blank e2d94c0bcf8cfe3_2% |
| Course Gold | fill in the blank e2d94c0bcf8cfe3_3% |
B.
1. Perform a vertical analysis for each course. Round your percentages to one decimal place.
| Course Blue | Course Black | Course Gold | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,900 | |||
| Outings revenue | fill in the blank 4aed13057fa1017_1 | 6,000 | 27,000 | |||
| Total revenue | $74,300 | $95,000 | $69,900 | |||
| Expenses | ||||||
| Landscaping | $7,800 | fill in the blank 4aed13057fa1017_2% | $14,200 | fill in the blank 4aed13057fa1017_3% | $6,400 | fill in the blank 4aed13057fa1017_4% |
| Wages | 43,900 | fill in the blank 4aed13057fa1017_5% | fill in the blank 4aed13057fa1017_6 | fill in the blank 4aed13057fa1017_7% | 32,700 | fill in the blank 4aed13057fa1017_8% |
| Repairs and maintenance | 5,600 | fill in the blank 4aed13057fa1017_9% | 2,600 | fill in the blank 4aed13057fa1017_10% | 4,400 | fill in the blank 4aed13057fa1017_11% |
| Fuel | 3,100 | fill in the blank 4aed13057fa1017_12% | 3,000 | fill in the blank 4aed13057fa1017_13% | 1,980 | fill in the blank 4aed13057fa1017_14% |
| Utilities | 1,800 | fill in the blank 4aed13057fa1017_15% | 3,000 | fill in the blank 4aed13057fa1017_16% | 1,600 | fill in the blank 4aed13057fa1017_17% |
| Total expenses | $62200 | $79000 | $47080 | |||
| Operating income | $12,100 | $16,000 | $fill in the blank 4aed13057fa1017_18 | |||
| Operating income % | fill in the blank 4aed13057fa1017_19% | fill in the blank 4aed13057fa1017_20% | fill in the blank 4aed13057fa1017_21% |
Feedback
2. Based on a vertical analysis of each course, which accounts would you want to investigate further?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?
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