1.Salary of new employee = $12,200
Delivery crew = $5,400
Sales Salaries = $65,400
Store manager Salaries = $28,000- 13,200 = $14,800
General Office Salaries = $6600
Employee Salaries Avoided per Quarter = $104,400
2.Employment Taxes Avoided = 104,400*15% = $15,660
3.Financial Advantage = costs avoided –margin lost
= Direct Advertising cost + Store Rent +2/3rd Insurance +Utilities + Salaries Avoided + Taxes Avoided- 340,000
= 65,000 + 83,000 + 11,700*2/3 + 27,850 + 104,400 + 15,660 – 355,000
= -$51,290 i.e. disadvantage
4.North store should not be closed, as there is a loss in closing the store
5.Financial Advantage of closing the north store = Gross Margin from Increased sales of East Store – Disadvantage calculated above
= (792,000/1,760,000)*880,000*1/4 – 51,290
=$47,710
Since there is net advantage, the store should be closed.
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: points South Skipped Store Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North Total Store Sales $4,200,000 $840,000 Cost of goods sold 2,310,000 500,000 Gross margin 1,890,000 340,000 Selling and administrative expenses: Selling expenses 841,000 243,400 Administrative expenses 443,000 118,000 Total expenses 1,284,000 361,400 Net operating income (loss) $ 606,000...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South Total store Store Sales $4,100,000 $860.000 $1.640.000 Cost of goods sold 2,255,000 515,000...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North Total Store Sales $4,600,000 $920,000 Cost of goods sold 2,530,000 565,000 Gross margin 2,070,000 355,000 Selling and administrative expenses: Selling expenses 849,000 247,400 Administrative expenses 463,000 122,000 Total expenses 1,312,000 369,400 Net operating income (loss) $ 758,000 $(14,400) South Store $1,840,000...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South Total Store Store Sales $4,000,000 $840,000 $1,600,000 Cost of goods sold 2,200,000 495,000 847,000 Gross margin 1,800,000 345,000 7 53,000 Selling and administrative expenses : Selling expenses 837,000 241,400 320,000 Administrative expenses 433.000 116,000 165,900 Total expenses 1,270,000 357,400 485,900...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement fo company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North Total Store Sales $4,000,000 $840,000 Cost of goods sold 2,200,000 495,000 Gross margin 1,800,000 345,000 Selling and administrative expenses: Selling expenses 837,000 241,400 Administrative expenses 433,000 116,000 Total expenses 1,270,000 357,400 Net operating income (loss) $ 530,000 $(12,400) South Store $1,600,000 847,000...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South Total Store Store Sales $4,400,000 $880,000 $1,760,000 Cost of goods sold 2,420,000 525, 000 927,000 Gross margin 1,980,000 355,000 833,000 Selling and administrative expenses : Selling expenses 845,000 245,400 322,000 Administrative expenses 453,000 120,000 171,900 Total expenses 1,298,000 365, 400...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South Total Store Store Sales $4,600,000 $920,000 $1,840,000 Cost of goods sold 2,530,000 565,000...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 Total North Store South Store East Store Sales $ 4,800,000 $ 960,000 $ 1,920,000 $ 1,920,000 Cost of goods sold 2,640,000 600,000 984,000 1,056,000 Gross margin 2,160,000 360,000 936,000 864,000 Selling and administrative expenses: Selling expenses 853,000 249,400 324,000 279,600 Administrative expenses...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for th company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South Total Store Store Sales $4,500,000 $900,000 $1,800,000 Cost of goods sold 2,475,000 550,000 935,000 Gross margin 2,025,000 350,000 865,000 Selling and administrative expenses: Selling expenses 847,000 246,400 322,500 Administrative expenses 458,000 121,000 173,400 Total expenses 1,305,000 367,400 495,900 Net operating...
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing Income statement for the company for the last quarter is given below: Superior Markets, Inc. Income Statement For the Quarter Ended September 30 North South Total Store Store Sales $4,200,000 $840,000 $1,680,eee Cost of goods sold 2,310,eee 500,000 886, eee Gross margin 1,890,00 340,00 794, 00 Selling and administrative expenses: Selling expenses 841,00 243,400 321,000 Administrative expenses 443,eee 118,80 168,900 Total expenses 1,284,00 361,488 489,900...