Assume a company with two divisions (A and B) prepared the following segmented income statement: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income A B $ 300,000 $ 209,500 120,000 180,000 Total $ 509,500 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500 The dollar sales required for the company to break even is closest to:
Q: Rose and McMullin, a regional public accounting firm, has recently accepted a contract to audit…
A: option -d) Systems documentation would be the most useful documentation for Rose and McMullin to…
Q: QS 20-6 (Algo) Manufacturing: Production budget LO P1 Champ Incorporated budgets the following sales…
A: Production budget:— This budget is prepared to estimate the number of units to be produced for…
Q: William Brown Company sells 8% bonds having a maturity value of $1,550,000 for $1,432,484.00. The…
A: The effective interest rate is the return on a savings account or interest-paying investment. The…
Q: 27. For 2010, Selma Co. had beginning inventory of $75,000, ending inventory of $90,000 and net…
A: With overstated beginning inventory, the cost of goods sold is also overstated. The net income is…
Q: SAMMI Manufacturing has two divisions. Division A makes a part with the following characteristics:…
A: Internal transfer means where one independent department is transferring the goods to another…
Q: The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax…
A: Partnership -A partnership is a type of corporate structure in which two or more individuals…
Q: ill decrease by $5,000 this year b
A: Depreciation:Reducing the value of the tangible asset due to its wear and tear over its useful life…
Q: i Required information [The following information applies to the questions displayed below.]…
A: FIFO METHOD:— Under this method, equivalent units are calculated by adding equivalent units in…
Q: Lauder Company manufactures and distributes various fixtures used primarily in new building…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: Unadjusted trail balance Account Debit ($) Credit ($) Cash 37,000 Investment (Capital) 100,000…
A: The objective of the question is to create and journalize adjustments, prepare an adjusted trial…
Q: Problem 1. Humility Company bought 25% of Meekness Company's outstanding ordinary share on January…
A: Consolidations:Consolidations refer to the financial strategy of acquiring the stock of a company to…
Q: Current Attempt in Progress Due to rapid employee turnover in the accounting department, the…
A: Goodwill -An intangible asset connected to the acquisition of one business by another is goodwill.…
Q: Identify whether each of the following items would be (a) added to the book balance, or (b) deducted…
A: Bank reconciliation is the process of matching the transactions recorded in a company's books with…
Q: Pharoah Company is a very profitable small business. It has not, however, given much consideration…
A: To prepare a correct bank reconciliation, we need to compare the bank statement with the company's…
Q: [The following information applies to the questions displayed below]. Diego Company manufactures one…
A: The cost of goods sold includes the cost of goods that are sold during the period. The gross profit…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: The cash budget is the statement prepared by the management in advance assuming future possible cash…
Q: 19. Using the following information, calculate the return on assets. Net income for November 5,000…
A: Return on assets is the financial ratio to find out the profitability generated by total assets. It…
Q: 2 Southeastern College began the year with endowment investments of $1,450,000 and $860,000 of…
A: Your analysis is on point! The provided journal entries are correct for both public and private…
Q: Bengal Company provides the following unit sales forecast for the next three months: July 12,000…
A: Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…
Q: Determine the amount of the child tax credit in each of the following cases: Answer is complete but…
A: Answer:- In tax law, modified adjusted gross income (MAGI) is used to establish eligibility for…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Unadjusted Trial Balance is the trial balance before making adjustments. When a company enters all…
Q: Required: 1. (a) What is the master budget variance for August 2022? (b) What is the total flexible…
A: Budgeting is the process of undertaking plans to spend money. This plan enables the business to…
Q: Do pregnant women give birth the week of their due date? A study claims that 18% of the population…
A: a)sample size n = 80 Point estimate = 0.35 Critical Value = 2.576 Standard error = 0.05333 Margin…
Q: Accounts Debit Credit Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts…
A: Ratio analysis is a powerful tool used by businesses, investors, and financial analysts to evaluate…
Q: Under Sarbanes-Oxley, management must include what report with the audited statements?
A: Under the Sarbanes-Oxley Act, management is required to include an Internal Controls Report with…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The income statement can be prepared using different methods as variable and absorption costing. The…
Q: Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All…
A: Journal entriesThe process of recording the day-to-day transactions of the company in the books is…
Q: Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt Issued $270,000 of…
A: A. Interest ExpensePepper's Interest Expense:Pepper purchased the bonds at par value, so no interest…
Q: The Pension Trust Fund maintained by the city of Marydell had the following transactions and events…
A: Journal entry contains the data which is significant to a single business transaction, including the…
Q: ! Required information [The following information applies to the questions displayed below.] The…
A: PartnershipPartnership is an arrangement between two or more people whereby they agree to manage…
Q: 16. Gatland recorded uncollectible accounts expense of $30,000 and wrote off accounts receivable of…
A: The objective of the question is to determine the net effect of the two transactions on working…
Q: The statement of income of Pina Colada Corporation is presented here. PINA COLADA CORPORATION…
A: CASH FLOW STATEMENTCash flow statement Provides additional information to user of financial…
Q: Scholastic Furniture, Incorporated, manufactures a variety of desks, chairs, tables, and shelf units…
A: Sales budget is a plan that estimates a company's total revenue for a specific time period.…
Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…
A: Inventory is reported on the balance sheet of the company and thus, it is necessary to determine the…
Q: [The following information applies to the questions displayed below.] Diego Company manufactures one…
A: The cost of goods sold includes the cost of goods that are sold during the period. The gross profit…
Q: On January 1, Year 1, Ginger, an individual, paid $24,000 for 6 percent of the stock in Root Corp.,…
A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…
Q: www O 0 P7.3 (LO 3), AP On July 31, 2025, Keeds Company had a cash balance per books of $6,140. The…
A: The objective of this question is to prepare a bank reconciliation statement for Keeds Company as of…
Q: The records of Oriole's Boutique report the following data for the month of April. Sales revenue…
A: Conventional Retail Method: Instead of using things at a physical location, the traditional retail…
Q: Mel and Susan Carter are working with an estate planner for disposition of their property during…
A: Income tax:The income tax refers to the amount that is paid by the taxpayer to the tax authority of…
Q: Current Attempt in Progress Presented below is information related to Kingbird Company. Cost Retail…
A: Lower of Cost or Market (LCM) is an accounting principle used to value inventory at the lower of its…
Q: When the components of income tax expense are disclosed on the income statement or footnotes, what…
A: Deferred Tax:Deferred Tax Liability (DTL) or Deferred Tax Asset (DTA) forms an important part of…
Q: Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31,…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: ABC Ltd conducted an impairment test of one of its cash generating units (CGU) at 30 June 20X0. The…
A: The objective of the question is to prepare the journal entry to account for the impairment of…
Q: What is Warren Clinic's net operating income? Hint: In order to determine this you will have first…
A: Operating Income -Operating Income, sometimes referred to as EBIT or Recurring Profit, is a crucial…
Q: Barb’s Best Pies is based in Newtown and makes gourmet pies sold online to customers on credit (40%…
A: The objective of the question is to calculate the total credit sales for Barb’s Best Pies in the…
Q: Katie Pereira and Ferro Schwartz are employees of Free Star, Inc. In February 2017, Katie's gross…
A: The salary expense is recorded in the income statement as an operating expense. Salaries are paid to…
Q: A diesel-powered tractor with a cost of $111,800 and an estimated residual value of $8,400 is…
A: The objective of the question is to calculate the depreciation for the month of April for a…
Q: Titles Printed Press Setup Cost May 27 $ 3,245 June 28 $ 3,278 July 40 $ 3,763 August 22 $ 3,071…
A: INTRODUCTION:We must first create a regression model utilizing the above data in order to estimate…
Q: Pharoah Limited purchased equipment on February 1, 2024, at a cost of $160,790. As the CFO of the…
A: The objective of this question is to calculate the depreciation expense for each year from 2024 to…
Q: Top management of Crane company is considering two alternative capital structures for 2027. The…
A: 20262027Net income(a)102,00079,800Common Stockholders Equity (b)1,020,000630,000(1,020,000 -…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 49,700 Net operating income $ 3,000 What is Division A’s segment margin?Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 50,000 Net operating income $ 10,000 What is Division A’s contribution margin? Multiple Choice $140,000 $180,000 $160,000 $200,000Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
- Answer and solution please. Thank you! Consider the following portion of a segmented income statement for the year just ended. Assume that thefixed expenses of Division X include P30,000 of direct expenses and that the discontinuance of the departmentwill not affect the sales of the other departments nor reduce the common expenses:Net sales P100,000Variable manufacturing costs 60,000Gross profit P 40,000Fixed expenses (direct and allocated) 50,000Loss from operations P (10,000)What would be the effect on the firm’s operating income if Division X were discontinued?a. P10,000 increase b. P40,000 decrease c. P100,000 decrease d. P10,000 decreaseThe following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin 540,000 Profit margin controllable by segment manager 310000 Segment profit margin 150000 On the basis of this information, Department no. 3's variable operating expenses are: Select one: a. $80,000. b. $160,000. c. $230,000. d. $390,000. e. not determinable.Jef Doyle is evaluating results for two separate business segments under his control. Selected financial information for each segment follows: Segment A Segment B Sales $100,000 $138,000 Net Operating Income (loss) 5,000 (2,000) Average Assets $200,000 $200,000 Calculate return on investment for Segment A. A. 0.5 B. -0.01 C. 0.025 D. 0.125 E. none of the above
- Given the following information:SalesFixed ExpensesVariable Expensess5,0002,0001,750What would expected operating profit be if the company experienced a 10% increase in fixedcosts and a 100/0 increase m sales volume? a) $1,375. b) $1,550. c) $1,250. d) $1,750.Accounting Gosnell Company produces two products: squares and circles. The projected income for thecoming year, segmented by product line, follows:Squares Circles TotalSales P300,000 P2,500,000 P2,800,000Less: Variable expenses 100,000 500,000 600,000Contribution margin P200,000 P2,000,000 P2,200,000Less: Direct fixed expenses 28,000 1,500,000 1,528,000Product margin P172,000 P 500,000 P 672,000Less: Common fixedexpenses100,000Operating expenses P 572,000The selling prices are P30 for squares and P50 for circles.1. Compute the number of units of each product that must be sold for Gosnell Companyto break even.2. Assume that the marketing manager changes the sales mix of the two products sothat the ratio is three squares to five circles. Repeat Requirement 13. Refer to the original data. Suppose that Gosnell can increase the sales of squares withincreased advertising. The extra advertising would cost an additional P45,000, andsome of the potential purchasers of circles would switch to…V. A company’s contribution format income statement for the previous follows: AmountSales P300,000Variable expenses 120,000Contribution margin 180,000Fixed expenses 108,000Net operating income P72,000 Required:a. Compute the company’s degree of operating leverage. b. Using the computed degree of operating leverage, estimate the effect on net operating income of a 5% increase in sales. c. Prepare an income statement using contribution format to verify your answer in (b)
- (J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunityB Incorporated provided the following data with respect to their segments: Segment Revenues Profit/Loss Identifiable Assets A 40 million 3 million 80 million B 20 million 4 million 70 million C 15 million (5 million) 60 million D 50 million (1 million) 100 million E 5 million (300,000) 30 million F 8 million (1.3 million) 20 million Total 138 million (600,000) 360 million Using the profit/loss test, what is the minimum amount of profit/loss for a segment to be considered as reportable: a. 700,000 b. 60,000 c. 600,000 d. 820,000 e. Answer not among theThe Sphinx division of Oriole Corporation generated net revenues of $12025000 and variable expenses of $7725000. If common corporate fixed costs were $1025000 and the segment margin was $1325000, what are the division’s direct fixed expenses?