Shown as follows is a segmented income statement for Drexel-Hall during the current month. 60 Sales...
Shown as follows is a segmented income statement for Drexel-Hall during the current month. Profit CentersDrexel-HallStore 1Store 2Store 3Dollars%Dollars%Dollars%Dollars%Sales$1,800,000100%$600,000100%$600,000100%$600,000100%Variable costs1,080,00060372,00062378,00063330,00055Contribution margin$720,00040%$228,00038%$222,00037%$270,00045%Traceable fixed costs: controllable432,00024120,00020102,00017210,00035Performance margin$288,00016%$108,00018%$120,00020%$60,00010%Traceable fixed costs: committed180,0001048,000866,0001166,00011Store responsibility margin$108,0006%$60,00010%$54,0009%$(6,000)(1)%Common fixed costs36,0002Income from operations$72,0004% All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy...
10.00 points Shown below i is a segmented income statement for Drexel-Hall during the current month Drexel-Hall Store 1 Store 3 Dolars $1,800,000 100% $600,000 100% s600,000 100% S600.000 100% Vañable costs 1,080,000 60 372,00062 378,000 63 330,00055 Contribution margin Traceable fioxed costs: controllable $ 720.000 40% 24 $228,000 38% $222,000 32,000 37%:;$270,000 210,000 45% 35 120,00020 102,00017 $288,000 16% $108,000 18% $120.000 20% S60.000 10% Traceable fixed costs: committed…… 180,00010 48,0008 66,00011 66,000 11 responsibility margin iiii! s 108,000...
100% 100% 100% 100 % 62 40% 37% 45 38% 20 Dollars $600,000 372,000 $228,000 120,000 $108,000 48,000 $ 60,000 Dollars $1,800,000 1,080,000 $ 720,000 432,000 $ 288,000 180,000 $ 108,000 36,000 $ 72,000 _17 Dollars $600,000 378,000 $222,000 102,000 $120,000 66,000 $ 54,900 Sales Variable costs Contribution margin Traceable fixed costs: controllable Performance margin Traceable fixed costs: committed Store responsibility margin Common fixed costs Income from operations Dollars $600,000 330,000 $ 270,000 210,000 $ 60,000 66,000 $ (6,000) 18%...
Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations 30 Investment Centers Butterfield, Inc Division 1 Dollars % Dollars % $ 470,000 100.00% $ 350,000 100% 246,000 52.34 210,000 6 0 $ 224,000 47.66% $ 140,000 40% 131,100 27.89 7 3,500 21 $ 92,900 19.77% $ 66,500 19% 40,000 8.51 $ 52,900 11.26% Division 2...
The most recent monthly income statement for Sun Shine Corporation is given below:TotalStore AStore BSales$1,000,000$400,000$600,000Variable expenses580,000160,000420,000Contribution margin420,000240,000180,000Traceable fixed expenses300,000100,000200,000Store segment margin120,000140,000(20,000)Common fixed expenses50,00020,00030,000Net operating income$70,000$120,000$(50,000)Due to its poor showing, consideration is being given to closing Store B. Studies show that if Store B is closed, one fourth of its traceable fixed expenses will continue unchanged. The studies also show that closing Store B would result in a 10 percent decrease in sales in Store A. The company allocates common fixed...
. The most recent monthly income statement for Sun City Stores is given below: Total Store A Store B Sales $1,000,000 $400,000 $600,000 Variable expenses 580,000 160,000 420,000 Contribution margin 420,000 240,000 180,000 Traceable fixed expenses 300,000 100,000 200,000 Store segment margin 120,000 140,000 (20,000) Common fixed expenses 50,000 20,000 30,000 Net operating income $70,000 $120,000 $($50,000) Due to its poor showing, consideration is being given to closing Store B. Studies show that if Store B is closed, one-fourth...
3. PREPARATION OF RESPONSIBILITY INCOME STATEMENTS Hal-Marts, Inc., has two sales departments: equipment and clothing. During February, these two departments reported the following operating results: Equipment Clothing Sales.................... .. .........----------------------------------------------------..... Contribution margin.....................-.-.-..-.-.-.-.- .-.-... | $490,000 35% $29,200 $250,000 50% Traceable fixed costs. $26,800 In addition, fixed costs common to both departments amounted to $54,400. Complete the following responsibility income statement for Hal-Marts, Inc. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement...
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement shown below: Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 132,000 66,000 66,000 Segment margin 108,000 $ 54,000 $ 54,000 Common fixed expenses 56,000 Net operating income $ 52,000 Required: 1. Compute the companywide break-even point in dollar sales . 2. Compute the...
Exercise 6-17 Working with a Segmented Income Statement [LO6-4] Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. Assume that Minneapolis’ sales by major market are: Market Minneapolis Medical Dental Sales $ 450,000 100 % $ 300,000 100 % $ 150,000 100 % Variable expenses 270,000...
Required information [The following information applies to the questions displayed below.] Dalton Co. follows a policy of allocating all common costs equally among its profit centers. A partial responsibility income statement for a typical month is shown below: Responsibility margins Common fixed costs Income from operations Profit Profit Profit Dalton Co. Center 1 Center 2 Center 3 $176,000 $72,000 $62,000 $ 42,000 $ 143,400 $ 47,800 $ 47,800 $ 47,800 $ 32,600 $ 24,200 $14,200 $ (5,800) After evaluating these...