Exercise 13-14A (Algo) Segment elimination decision LO 13-4 Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) BENSON COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Effect on income Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Required A A $ 171,000 (128,000) (18,000) Required B > B $246,000 (91,000) (27,000) 25,000 128,000 (39,000) (42,000) (7,000) (13,000) $ (21,000) $ 73,000 с $258,000 (82,000) (22,000) 154,000 (27,000) 0 $127,000

Exercise 13-14A (Algo) Segment elimination decision LO 13-4 Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) BENSON COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Effect on income Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Required A A $ 171,000 (128,000) (18,000) Required B > B $246,000 (91,000) (27,000) 25,000 128,000 (39,000) (42,000) (7,000) (13,000) $ (21,000) $ 73,000 с $258,000 (82,000) (22,000) 154,000 (27,000) 0 $127,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 43E

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Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin. General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Complete this question by entering your answers in the tabs below. Required A Required B STUART COMPANY Income Statements for Year 2 Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Cost of goods sold Sales commissions Advertising expense Effect on income Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ $ 163,000 (128,000) (17,000) 0 B $242,000 $256,000 (78,000) (28,000) (86,000)…
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Problem 11-19 (Algo) Comparison of Performance Using Return on Investment (ROI) [L011- Comparative data on three companies in the same service industry are given below. Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company A Sales $ 3,910,000 2$ 1,878,000 Net operating income $ 469,200 356,820 Average operating assets Margin $ 1,700,000 $ 2,660,000 4 % Turnover 1.50 Return on investment (ROI) 11.40 %
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Segment reporting #1 Acme Company has two segments within their organization - Segment A and Segment B Revenue and cost info relating to the segments is below: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Last year the company produced and sold: Segment A Segment B 10.50 5.50 3.50 3.75 30,000 18,000 25,000 30,000 It's annual common fixed expenses are: 75,000 a Prepare a segmented CM IS. b Compute the company wide break even point in dollar sales. c Compute the break even point in dollar sales for Segment A. d Compute the break even point in dollar sales for Segment B.