Please check the answer twice and add explanation please 7)The results from one of your divisions for 2020 is given below.units:28,500Rev722,052,000DM30855,000DL10285,000VarMOH4114,000VarSelling8228,000CM570,000FC-Moh305100FC-S&A이19950065,400The Division Manager feels that if you increase advertising by $23,250 you will increase sales by 4%.What would the Operating Income (OI) be if you did? (round to nearest dollar)

The Division Manager suggests that by increasing advertising by $23,250, sales will increase by 4%.…

Answered: 7) The results from one of your…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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Suresh Co. expects its five departments to yield the following income for next year. Dept. M $77,000 Dept. O $70,000 Dept. N Dept. P Dept. T Total Sales $ 39,000 $56,000 $ 38,000 $ 280,000 Expenses Avoidable Unavoidable 21,600 5,200 26,800 19,000 14,800 55,800 42,400 18,600 46,800 16,800 144,600 139,600 43, 200 Total expenses 70,600 61,000 62, 200 63,600 284, 200 Net income (loss) $ 6,400 $(22,000) $43, 200 $(6,200) $( 25,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
Two products DH1 and DH2are manufactured in a department. Sales for the year 2022 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 DH1 9000 12000 14000 16000 DH2 7000 9000 1000 12000 Selling prices in Quarter 1 were estimated as OMR 20 per unit for DH1 and OMR 30 for DH2 respectively. Average sales return are 10% of Sales. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product DH1? Select one: a. 394129 b. 389253 c. 383328 d. 366000
Operating results for Division A of Alpha Company during 2019 are as follows: Sales $560,000 Cost of goods sold 347,200 Gross profit 212,800 Direct expenses 37,800 Common expenses 63,000 100,800 $112,000 Total expenses Net income If Division A would maintain the same quantity of product sold while raising selling prices by 14.000000000000002%, increasing direct labor costs by $28,000 and implementing a new marketing campaign at a cost of $14,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.) Select one: O a. Net income would increase by $36,400 b. Net income would increase by $28,000 c. Net income would decrease by $36,400 d. Net income would increase by $42,000 e. None of these options are correct. O O O
Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 1 Department 2 Department 3 Sales Variable Costs Contribution Margin Direct fixed expenses Common fixed expenses Total fixed expenses Operating income (loss) $737,000 489,500 $247,500 $132,000 82,500 Select one: $214,500 $33,000 $354,200 315,700 $38,500 $29,700 33,000 $62,700 $(24,200) $941,600 662,200 $279,400 $179,300 103,400 $282,700 $(3,300) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 3 have on DJH's total operating income? a. It would decrease total operating income by $100,100. b. It would increase total operating income by $103,400. c. It would decrease total operating income by $279,400. d. None of these options are correct. e. It would decrease total operating income by $3,300.
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
Two products DH1 and DH2are manufactured in a department. Sales for the year 2022 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 DH1 9000 12000 14000 16000 DH2 7000 9000 1000 12000 Selling prices in Quarter 1 were estimated as OMR 20 per unit for DH1 and OMR 30 for DH2 respectively. Average sales return are 10% of Sales and 10% increase in selling price in each quarter compared to previous one. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product DH1? Select one: a. 394129 b. 389253 c. 366000 d. 383328
Capital Investments has two divisions. Each division's required rate of return is 10%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Read the requirements. Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Measure of income + Measure of investment 12,350,000 95,000,000 10,640,000 56,000,000 Division A Division B Division A Division B Measure of income 12,350,000 10,640,000 Division A Division B Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the RI for each division. X Required rate of return Measure of investment 95,000,000 56,000,000 10 % 10 % $ ROI ... % % -( -( $ -($ ROI X 13 % 19 % = ) = ) = Requirement c. Capital is planning an expansion that will require each division to increase its investments by $25,000,000 and its…
The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the return on sales for the division? 4% 8% 10% 20% Group of answer choices 1 2 3 4
The Best Medical Supply Company has two divisions that operate independently of one another. The financial data for the year 2020 reported the following results: North South Sales Operating income Invested capital P300,000,000 75,000,000 P250,000,000 55,000,000 500,000,000 600,000,000 The company's desired rate of return is 10%. Which division has the best return on investment and which division has the best residual income figure, respectively? North, North South, North North, South South, South
The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
You have been presented with the following information : Customer Perspective Targets $ 10 mil Actual Performance $6.5 mil a. Total Sales b. No. of Stock Returns 10 20 Internal Business Perspective Actual Performance $50k Targets a. Maintenance Costs $200k b. No of Workers (production) 30 15 Financial Perspective Actual Performance $1mil Targets a. Net Profit $4mil b. Asset Turnover ratio 15 times 20 times Innovation & Growth Perspective Targets $100k Actual Performance $20k a. Training Costs b. No of Staff (Marketing) 20 12 Other information obtained are customers are frequently complaining and cancelling orders and machines breakdowns. Required : i) Comment on the performance.

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