1 | ||||
Division | ||||
Total Company | East | Central | West | |
Sales | 1665000 | 415000 | 690000 | 560000 |
Variable expenses | 544050 | 219950 | 144900 | 179200 |
Contribution margin | 1120950 | 195050 | 545100 | 380800 |
Traceable fixed expenses | 817000 | 293000 | 334000 | 190000 |
Divisional segment margin | 303950 | -97950 | 211100 | 190800 |
Common fixed expenses not traceable to divisions | 416000 | |||
Net operating loss | (112050) | |||
2a | ||||
Incremental West Division sales | 56000 | =560000*10% | ||
X Contribution margin ratio | 68% | =1-32% | ||
Incremental contribution margin | 38080 | |||
Less incremental advertising expense | 27000 | |||
Net operating income increase | 11080 | |||
b | ||||
Yes, the advertising program should be initiated. |
Exercise 6-11 Segmented Income Statement (L06-4) Wingate Company, a wholesale distributor of electronic equipment, has been...
Exercise 6-11 Segmented Income Statement (LO6-4] 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) $ 1,645,000 643,600 1,001,400 1,102,000 $ (100,600) 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...
Exercise 6-11 Segmented Income Statement [LO6-4] 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 $ 1,594,000 Variable expenses 570,440 Contribution margin 1,023,560 Fixed expenses 1,126,000 Net operating income (loss) $ (102,440) 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...
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 $...
Exercise 4-11 (Algo) Segmented Income Statement [LO4-4] 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 $ 1,502,000 Variable expenses 532,460 Contribution margin 969,540 Fixed expenses 1,066,000 Net operating income (loss) $ (96,460) 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...
Exercise 6-11 Segmented Income Statement [LO6-4] 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 $ 1,000,000 Variable expenses 390,000 Contribution margin 610,000 Fixed expenses 625,000 Net operating income (loss) $ (15,000) 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...
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) 1,572,000 533, 120 1,038,880 1,143,000 (104,120) $ 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...
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 $ 1,579,000 Variable expenses 691,900 Contribution margin 887,100 Fixed expenses 976,000 Net operating income (loss) $ (88,900) 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 $ 449,000 $...
A) B) 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 (los) $ 1,585,000 585,650 999,350 1,099,000 $ 99,650) 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...
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) $ 1,551,000 561,560 989, 440 1,088,000 $ (98,560) 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 $351,000 Central $650,000 West $550,000...
9. 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) $ 1,554,000 545,180 1,008,820 1,110,000 $ (101,180) 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 Central $ 680,000 East $ 354,000...