1.
Total Company | East | Central | West | |
Sales revenue | $1,600,000 | $380,000 | $630,000 | $590,000 |
Less Variable expense | $569,100 | $186,200 | $176,400 | $206,500 |
Contribution margin | $1,030,900 | $193,800 | $453,600 | $383,500 |
Less Traceable fixed expense | $812,000 | $267,000 | $335,000 | $210,000 |
Segment margin | $218,900 | -$73,200 | $118,600 | $173,500 |
Common fixed expense | $322,000 | |||
Net oprating loss | ($103,100) |
2-a.
Contribution margin ratio of West division:
= $383,500 / $590,000
= 65%
Increase or decrease in net operating income:
= ($590,000 X 10% X 65%) - $20,000
= $18,350
Incremental net operating income = $18,350
2-b.
Yes, because the incremental net operating income is positive.
10 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time,...
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, 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...
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) $1,571,000 652.890 918,110 1,010,000 $ (91,890) 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 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: Sales $ 1,689,000 Variable expenses 663,450 Contribution margin 1,025,550 Fixed expenses 1,128,000 Net operating income (loss) $ (102,450) 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 $...
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 $ 1,672,000 Variable expenses 740,640 Contribution margin 931,360 Fixed expenses 1,024,000 Net operating income (loss) $ (92,640) 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 $ 402,000 $...
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...