Homework Answers
| a | ||
| Gross profit percentage = Gross Profit/Sales | ||
| Gross profit percentage: | ||
| Department 1-3 | 38% | =342000/900000 |
| Department 4 | 27% | =27000/100000 |
| b |
| Total margin generated by Department 4 = Gross Profit-Direct expenses |
| Total margin generated by Department 4 = 27000-24000 = $3000 |
| Firm's Total net income would decrease by $3000 if Department 4 is eliminated |
| Firm's net income = 118000-3000 = $115000 |
| The firm's net income would be $115000 |
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U A Print Question 2 Not yet answered Marked out of 2.00 Flag question Dropping Unprofitable...
Question 2 Answer saved Marked out of 2.00p Flag question Dropping Unprofitable Department Thomas Corporation has...
Question 2 Answer saved Marked out of 2.00p Flag question Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,000,000 $900,000 $100,000 Cost of sales 631,000 558,000 73,000 Gross profit 369,000 342,000 27,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 107,000 96,000 11,000 Total expenses 251,000 216,000 35,000 Net income (Loss) $118,000 $126,000 $(8,000) Required a. Calculate the...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,000,000 $900,000 $100,000 Cost of sales 631,000 558,000 73,000 Gross profit 369,000 342,000 27,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 107,000 96,000 11,000 Total expenses 251,000 216,000 35,000 Net income (Loss) $118,000 $126,000 $(8,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,950,000 $1,550,000 $400,000 Rectangular Snip Cost of sales 328,000 1,413,000 1,085,000 Gross profit 537,000 465,000 72,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 205,000 145,000 60,000 Total expenses 84,000 349,000 265,000 $188,000 $200,000 $(12,000) Net income (Loss) Required a. Calculate the gross profit percentage for departments 1-3 combined and...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,550,000 $1,250,000 $300.000 234,000 66,000 Cost of sales 1,109,000 875,000 Gross profit Direct expenses 441,000 375,000 $120,000 $144,000 $24,000 Common expenses 183,000 134,000 49,000 Total expenses 327,000 254.000 73,000 Net income (Loss) $114.000 $121,000 S17,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $2,100,000 $1,650,000 $450,000 Cost of sales 1,326,000 1,006,500 319,500 Gross profit 774,000 643,500 130,500 Direct expenses $144,000 $120,000 $24,000 Common expenses 316,000 200,500 115,500 Total expenses 460,000 320,500 139,500 Net income (LOSS) $314,000 $323,000 $(9,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
A Print Question 4 Not yet answered Marked out of 2.00 Flag question Juoddns Preparation of...
A Print Question 4 Not yet answered Marked out of 2.00 Flag question Juoddns Preparation of Individual Budgets During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 5,000 units in the urban region at a unit price of $53 and 4,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he...
Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows:
Dropping Unprofitable DepartmentThomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows:TotalDepartments 1-3Department 4Sales$962,000$810,000$152,000Cost of sales640,500526,500114,000Gross profit$321,500$283,500$38,000Direct expenses$144,000$120,000$24,000Common expenses127,000106,00021,000Total expenses$271,000$226,000$45,000Net income (Loss)$50,500$57,500$(7,000)Requireda. Calculate the gross profit percentage for departments 1-3 combined and for department 4.Department 1-3 Answer%Department 4 Answer%b. What effect would elimination of department 4 have had on total firm net income? (Ignore the effect of income tax.)The firm's net income would be: $Answer
Question 31 Not yet answered Marked out of 3.00 Flag question Question text The following information...
Question 31 Not yet answered Marked out of 3.00 Flag question Question text The following information pertains to Metro Track Company. METRO TRACk COMPANY Comparative Income Statements For Years Ended December 31, 2017 and 2016 2017 2016 Sales $57,534 $42,542 Cost of goods sold 16,870 13,669 Gross profit 40,664 28,873 Operating expenses 24,093 19,241 Operating income 16,571 9,632 Other expenses/revenues: Interest revenue 240 194 Interest expense (196 ) (172 ) Total other (expenses)/revenues (44 ) (22 ) Income before income...
Question 34 Not yet answered Marked out of 3.00 Flag question Question text The following information...
Question 34 Not yet answered Marked out of 3.00 Flag question Question text The following information pertains to Metro Track Company. METRO TRACk COMPANY Comparative Income Statements For Years Ended December 31, 2017 and 2016 2017 2016 Sales $57,534 $42,542 Cost of goods sold 16,870 13,669 Gross profit 40,664 28,873 Operating expenses 24,093 19,241 Operating income 16,571 9,632 Other expenses/revenues: Interest revenue 240 194 Interest expense (196 ) (172 ) Total other (expenses)/revenues (44 ) (22 ) Income before income...
Question 32 Not yet answered Marked out of 3.00 Flag question Question text The following information...
Question 32 Not yet answered Marked out of 3.00 Flag question Question text The following information pertains to Metro Track Company. METRO TRACk COMPANY Comparative Income Statements For Years Ended December 31, 2017 and 2016 2017 2016 Sales $57,534 $42,542 Cost of goods sold 16,870 13,669 Gross profit 40,664 28,873 Operating expenses 24,093 19,241 Operating income 16,571 9,632 Other expenses/revenues: Interest revenue 240 194 Interest expense (196 ) (172 ) Total other (expenses)/revenues (44 ) (22 ) Income before income...
Question 2 Answer saved Marked out of 2.00p Flag question Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,000,000 $900,000 $100,000 Cost of sales 631,000 558,000 73,000 Gross profit 369,000 342,000 27,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 107,000 96,000 11,000 Total expenses 251,000 216,000 35,000 Net income (Loss) $118,000 $126,000 $(8,000) Required a. Calculate the...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,950,000 $1,550,000 $400,000 Rectangular Snip Cost of sales 328,000 1,413,000 1,085,000 Gross profit 537,000 465,000 72,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 205,000 145,000 60,000 Total expenses 84,000 349,000 265,000 $188,000 $200,000 $(12,000) Net income (Loss) Required a. Calculate the gross profit percentage for departments 1-3 combined and...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,550,000 $1,250,000 $300.000 234,000 66,000 Cost of sales 1,109,000 875,000 Gross profit Direct expenses 441,000 375,000 $120,000 $144,000 $24,000 Common expenses 183,000 134,000 49,000 Total expenses 327,000 254.000 73,000 Net income (Loss) $114.000 $121,000 S17,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $2,100,000 $1,650,000 $450,000 Cost of sales 1,326,000 1,006,500 319,500 Gross profit 774,000 643,500 130,500 Direct expenses $144,000 $120,000 $24,000 Common expenses 316,000 200,500 115,500 Total expenses 460,000 320,500 139,500 Net income (LOSS) $314,000 $323,000 $(9,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
A Print Question 4 Not yet answered Marked out of 2.00 Flag question Juoddns Preparation of Individual Budgets During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 5,000 units in the urban region at a unit price of $53 and 4,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he...
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