Solution:
The best number for CEO to look at to determine the effect of this elimination on the new operating income of the company as a whole is "The Product line's segment margin"
Hence option c is correct.
13. Hayworth Corporation has just segmented last year's income statement into its ten product lines. The...
7. Riley Sporting Goods has a number 012 y Sporting Goods has a m a atements segmented by sto t h the US Inc cost with respect to the stores? r ed a. the cost of Riley store manager salaries b. the cost of Riley's national branding campaign e the cost of utilities at each Riley retail location d. the cost of goods sold at each Riley store 8. Morrison Inc. has just segment t s te does. Ma s...
The following monthly segmented income statement is for Condiment Company, which has three separate product lines (A, B, and C). A B C Total Sales revenue $37,500 $50,000 $12,500 $100,000 Variable costs $16,000 $27,500 $5,000 $48,500 Contribution margin $21,500 $22,500 $7,500 $51,500 Direct fixed costs $19,500 $16,000 $3,500 $39,000 Allocated fixed costs $3,750 $5,000 $1,250 $10,000 Profit (loss) $(1,750) $1,500 $2,750 $2,500 Management is concerned about the losses associated with product line A and is considering dropping this product line....
Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Sales Contribution margin Divisional segment margin Total Company Southern Northern $4,500,000 $2,800,000 $1,900,000 $1,200,000 $ $1,000,000 $ 800,000 $ Net operating income last year for Nantor Corporation was $450,000 In last year's income statement segmented by division, what Multiple Choice O $550,000 O $900,000 Prey 3 of 10 Next >
Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Total Company Southern Northern Sales $ 5,800,000 $ 3,580,000 $ 2,220,000 Contribution margin $ 2,550,000 $ 1,590,000 $ 960,000 Divisional segment margin $ 1,390,000 $ 1,060,000 $ 330,000 Net operating income last year for Nantor Corporation was $580,000. In last year's income statement segmented by division, what were Nantor's total common fixed expenses?
Segmented Income Statements, Adding and Dropping Product Lines Dantrell Palmer has Just been appointed manager of Kirchner Glass Products Division. He has two years to make the division profitable. If the division is still showing a loss after two years, it will be eliminated, and Dantrell will be reassigned as arn assistant divisional manager in another division. The divisional income statement for the most recent year is as follows: Sales Less: Variable expenses $4,590,000 ,953,450 $535,550 575,000 38,450) 200,000 238,450)...
TUS LUULUUII. WULJIVIC IS I Cauv TUI IUUULLUIT. Required information Grocery Segmented Income Statement for MSI's Toddle Town Tours Product Lines Post Pet Store office Parade Getaway - : - Polka Total Sales revenue $105,000 $100,000 $30,000 $235,000 Variable costs 45,000 41,000 25,000 111,000 Contribution margin $ 60,000 $ 59,000 $ 5,000 $124,000 Less: Direct Fixed costs 7,000 6,400 4,800 18,209 Segment margin $ 53,000 $ 52,600 200 $105,800 Less: Common fixed costs* 5,250 5,000 1,500 11,750 Net operating income...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (8,000) (6,000) (14,000) Product margin $7,000 $12,000 $19,000 Less common fixed expenses (6,000) Net income $13,000 Pens and pencils are sold...
FunTime Company produces three lines of greeting cards: scented,
musical, and regular. Segmented income statements for the past year
are as follows:
Scented
Musical
Regular
Total
Sales
$ 10,000
$15,000
$25,000
$50,000
Less: Variable expenses
7,000
12,000
12,500
31,500
Contribution margin
$ 3,000
$ 3,000
$12,500
$18,500
Less: Direct fixed expenses
4,000
5,000
3,000
12,000
Segment margin
$ (1,000)
$ (2,000)
$ 9,500
$ 6,500
Less: Common fixed expenses
7,500
Operating income (loss)
$(1,000)
Kathy Bunker, president of FunTime, is...
Segmented Income Statements, Adding and Dropping Product Lines Dantrell Palmer has just been appointed manager of Kirchner Glass Products Division. He has two years to make the division profitable. If the division is still showing a loss after two years, it will be eliminated, and Dantrell will be reassigned as an assistant divisional manager in another division. The divisional income statement for the most recent year is as follows: Sales $4,590,000 Less: Variable expenses 3,953,450 Contribution margin $636,550 Less: Direct...
Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $360 $1,825 Less: Variable expenses $1,280 1,115 $165 $185 45 $140 270 1,430 Contribution margin $395 Less direct fixed expenses: Depreciation 15 80 15 100 95 Salaries 85 280 20 $40 $(25) Segment margin $35 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to...