10) The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:RevenuesVariable operating expensesControllable fixed expenses.Noncontrollable fixed expensesIn addition, the company incurred common fixed costs of $18,000.Multiple ChoiceThe profit margin controllable by the Central Valley segment manager is:$145,000.$32,000.O $50,000.OO $75,000.Restin,Inc.$750,000410,000210,00060,000Los AngelesDivision$200,000110,00065,00015,000$44,000.Bay AreaBay AreaDivision$235,000120,00075,00020,000Central ValleyDivision$325,000180,00070,00025,000

Controllable profit is calculated by deducting controllable expenses from controllable revenues.…

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Los Angeles Bay Area Central Valley Inc. Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses $750,000 410,000 210,000 60,000 Multiple Choice Division $200,000 110,000 65,000 15,000 In addition, the company incurred common fixed costs of $18,000. The profit margin controllable by the Central Valley segment manager is: Division $235,000 120,000 75,000 20,000 Division $325,000 180,000 70,000 25,000

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Los Angeles Bay Area Central Valley Inc. Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses $750,000 410,000 210,000 60,000 Multiple Choice Division $200,000 110,000 65,000 15,000 In addition, the company incurred common fixed costs of $18,000. The profit margin controllable by the Central Valley segment manager is: Division $235,000 120,000 75,000 20,000 Division $325,000 180,000 70,000 25,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following data are available for Segment X of XYZ Company: Net income of the segment $50,000 Contribution to indirect expenses 40,000 Controllable income by manager 48,000 Assets directly used by the manager 360,000 Assets under the control of the segment 240,000 manager Determine the return on investment for evaluating 1. the income performance of the manager of Segment X and 2. the rate of income contribution of the segment. Answer:
ume a company with two divisions (A and B) prepared the following segmented income statement: A Total 507,000 260,000 247,000 180,000 67,000 43,000 24,000 IB Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 300,000 120,000 180,000 100,000 80,000 207,000 140,000 67,000 80,000 (13,000) The dollar sales required for the company to break even is closest to: O $455,102 $355,201 $300,000 O $400,000
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 $200,000
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Traceable fixed expenses Sales Variable expenses Contribution margin Segment margin Common fixed expenses Net operating income The dollar sales required for the company to break even is closest to: $ 300,000 $ 209,500 Total $ 509,500 120,000 180,000 140,000 260,000 69,500 249,500 100,000 80,000 180,000 $ 80,000 $ (10,500) 69,500 48,000 $ 21,500
Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929
Assume 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:
Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ZACHARY COMPANY Income Statements for Year 2 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) Required a. Prepare a schedule of relevant sales and costs for Segment A A $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ (18,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) $ 109,000 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 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 Revenue and Cost…
Halland Ltd prepared its segmented income statement as shown above Sales Variable expense Contribution margin $ Traceable fixed expenses $ Common fixed expenses $ Net profit $ O A. $667,000 O B. $1,385,000 O C Division A Division B Company 800,000 $ 400,000 $ $673,000 $ $ Breakeven point in $ of Halland Ltd is O D. $385,000 400,000 $ 250,000 $ 160,000 $ 90,000 $ 200,000 $1,000,000 80,000 $ 120,000 $ 100,000 $ 40,000 $ 60,000 $ 480,000 520,000 350,000 200,000 150,000
Data for January for Blondi Corporation and its two major business segments, North and South, appear below Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South In addition, common fixed expenses totaled $179.000 and were allocated as follows: $93,000 to the North business segment and $86.000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Multiple Choice $7,000) $172,000 $351,000 $496,000 $660,000 $ 383,000 $ 79,000 s 510,000 $ 291,000 $ 66,000
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Copr. Goedl Uplift, Inc. reported the following financial data for the segmented income statements: Sales $125,000 Variable expenses $63,000 Contribution margin $62,000 Total fixed expenses $42,000 Common fixed expenses $15,000 How much are traceable fixed expenses? $83,000 $20,000 $48,000 $27,000 SUBMIT B 4 5 LO 5
The 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.