1 | Division | ||||
Total Company | East | Central | West | ||
Sales | $ 15,71,000 | $ 4,21,000 | $ 6,20,000 | $ 5,30,000 | |
Less: | Variable expenses (Sales X Variable expense percentage to sales) | $ 6,52,890 | $ 2,06,290 | $ 1,92,200 | $ 2,54,400 |
Contribution margin | $ 9,18,110 | $ 2,14,710 | $ 4,27,800 | $ 2,75,600 | |
Less: | Traceable fixed expenses | $ 8,12,000 | $ 2,85,000 | $ 3,32,000 | $ 1,95,000 |
Divisional segment margin | $ 1,06,110 | $ -70,290 | $ 95,800 | $ 80,600 | |
Less: | Common fixed expenses not traceable to divisions ($1010000 - $812000) | $ 1,98,000 | |||
Net operating Income / (loss) | $ -91,890 | ||||
2 - a. | |||||
Computation of Incremental Net operating Income: | |||||
(a) | Incremental sales (West Division) [$530000 X 18%] | = | $ 95,400 | ||
(b) | Contribution margin ratio ($275600 / $530000) | = | 52% | ||
(a) X (b) | Incremental contribution margin | = | $ 49,608 | ||
Less: | Incremental advertising expense | = | $ 27,000 | ||
Incremental Net operating Income: | = | $ 22,608 | |||
2 - b. | Yes | ||||
As shown above due to advertising expenditure there is a huge rise outcome results. |
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,551,000 549,400 1,001,600 1,102,000 (100,400) $ In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable expenses as a percentage of...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,724,000 596,420 1,127,580 1,240,000 (112,420) $ In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable expenses as a percentage of...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,639,000 618,920 1,020.080 1,122,000 $ (101,920) In an effort isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales...
10 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: Sales s 1.600.000 Variable expenses 569,100 Contribution margin Fixed expenses 1,134,000 Net operating income (loss) S (103,100) In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 380,000...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: Sales $ 1,627,000 Variable expenses 517,490 Contribution margin 1,109,510 Fixed expenses 1,220,000 Net operating income (loss) $ (110,490 ) In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,556,000 Variable expenses 582,380 Contribution margin 973,620 Fixed expenses 1,071,000 Net operating income (loss) $ (97,380) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 366,000 $...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: Sales $ 1,632,000 Variable expenses 640,880 Contribution margin 991,120 Fixed expenses 1,090,000 Net operating income (loss) $ (98,880) In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: ...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating incone (less) $ 1.783.000 577,918 1.125.90 1,238, cee $ (112,910) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: West $590,000 Sales Variable expenses as a...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,619,000 693,650 925,350 1,018,000 (92,650) $ In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format Income statement: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,524.ee 598,488 925.600 1,018, eee 192.480) $ In an effort to resolve the problem, the company would like to prepare an Income statement segmented by division. Accordingly, the Accounting Department has developed the following Information: East $394,000 Division Central $600,000 256 Variable...