A. | Asia | Europe | Total | |
Revenues | $ 50,600 | $ 64,400 | $ 1,15,000 | |
Direct costs | $ 25,300 | $ 38,640 | $ 63,940 | |
Operating profit before allocations | $ 25,300 | $ 25,760 | $ 51,060 | |
Corporate costs | $ 13,200 | $ 16,800 | $ 30,000 | |
Operating profit | $ 12,100 | $ 8,960 | $ 21,060 | |
Workings: | ||||
Asia | Europe | Total | ||
(i) | Revenues | $ 50,600 | $ 64,400 | $ 1,15,000 |
(ii) = (i) / $117000 | Percentage | 44.00% | 56.00% | 100.00% |
(ii) X $30000 | Corporate costs | $ 13,200 | $ 16,800 | $ 30,000 |
B. | Asia | Europe | Total | |
Revenues | $ 50,600 | $ 64,400 | $ 1,15,000 | |
Direct costs | $ 25,300 | $ 38,640 | $ 63,940 | |
Operating profit before allocations | $ 25,300 | $ 25,760 | $ 51,060 | |
Corporate costs | $ 8,360 | $ 10,640 | $ 19,000 | |
Operating profit | $ 16,940 | $ 15,120 | $ 32,060 | |
Workings: | ||||
Asia | Europe | Total | ||
(i) | Revenues | $ 50,600 | $ 64,400 | $ 1,15,000 |
(ii) = (i) / $117000 | Percentage | 44.00% | 56.00% | 100.00% |
(ii) X $19000 | Corporate costs | $ 8,360 | $ 10,640 | $ 19,000 |
Stable Enterprises is organized into two geographic divisions (Asia and Europe) and a corporate headquarters. Late...
Stable Enterprises is organized into two geographic divisions (Asia and Europe) and a corporate headquarters. Late in year 7, the Stable Finance Department prepared financial operating plans (budgets) for the two divisions, shown as follows (in thousands of dollars). Asia Europe Revenues $ 28,600 $ 36,400 Direct division costs 14,300 21,840 Operating profit before allocation $ 14,300 $ 14,560 Corporate overhead costs (in thousands of dollars) are expected to be $15,000 in year 8. Of the $15,000, $8,500 is fixed...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $2,480,000 1,488,000 $ 992,000 West $3,720,000 1,736,000 $1,984,000 Corporate overhead costs are expected to be $1,116,000 in year 2. Of the $1,116,000, $620,000 is fixed and $496,000 is variable, with respect to revenue. Division managers are...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $ 2,080,000 1,248,000 $ 832,000 West $3,120,000 1,456,000 $1,664,000 Corporate overhead costs are expected to be $936,000 in year 2. Of the $936,000, $520,000 is fixed and $416,000 is variable, with respect to revenue. Division managers...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $2,720,000 1,632,000 $1,088,000 West $4,080,000 1,904,000 $2,176,000 Corporate overhead costs are expected to be $1,224,000 in year 2. Of the $1,224,000, $680,000 is fixed and $544,000 is variable, with respect to revenue. Division managers are evaluated...
A1A Manufacturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Regina. A1A corporate headquarters incurs costs of $17,600,000 per period, which is an indirect cost of the divisions. Corporate headquarters currently allocates this cost to the divisions based on the revenues of each division. The CEO has asked each division manager to suggest an allocation base for the indirect headquarters costs from among revenues, segment margin, direct costs, and number of employees. The relevant information about...
Yoramba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follow Tech Support Department $516,000 Purchasing Department 9,600 Cther corporste administrative expenses 560,000 Total corporate expense $1,165,600 The other corporahe administrative expenses include officers salartes and other expenses required by the corporation. The Tech Suppert Depertment charges the divisions for services rendered, based on the number of computers in the department,...
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing The corporate expenses for the year ended December 31, 2016, are as follows: Tech Support Department $ 459,200 Purchasing Department 900 Other corporate administrative expenses 545,000 Total corporate expense $1,101,100 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the...
La Mesa Foods has the following data for its two divisions for the year: Dos Revenues Cost of sales Allocated corporate overhead Other general & administration Uno $600,000 384,750 36,000 79,250 $1,900,000 950,000 114,000 550,000 Required: a. Compute divisional operating income for each of the divisions. Assume taxes are 30%. b. Calculate the gross margin ratio for each division. c. Calculate the operating margin ratio for each division. d. Calculate the profit margin ratio for each division.
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: $1,240,200 Tech Support Department Purchasing Department Other corporate administrative expenses 447,000 725,000 Total corporate expense $2,412,200 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department,...
Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Casino Hotel Revenues $ 36,000,000 $ 26,000,000 Costs 16,000,000 14,000,000 The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of...