a. By how b. Assume that West Division is able to increase its revenue to $324,00 much would companywide income increase or decrease if West Division is eliminated? Should We O by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income. Should West Di c. What is the minimum amount of revenue required to justify continuing the operation of West Division? vision be eliminated if revenue were $324,000? Answer is not complete Complete this question by entering your answers in the tabs below. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Should West Division be eliminated? Yes s Prey 3 f 20f Next>
Homework Answers
Add Answer to:
Return to question Dudley Transport Company divides its operations into four divisions. A recent ...
Perez Transport Company divides its operations Into four divisions. A recent Income statement for its West...
Perez Transport Company divides its operations Into four divisions. A recent Income statement for its West Division follows: PEREE TRANSPORT COMPANY Went Division Income Statement for the Year 2019 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 610,000 (460,000) (61,000) (81,000) (51,000) (141,000) $(184,000) Required a. By how much would companywide Income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able...
Rundle Transport Company divides its operations into four divisions. A recent income statement for its West...
Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. RUNDLE TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 620,000 (470,000) (62,000) ( 82,000) (52,000) (142,000) $(188,000) Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able...
West Division Income Statement for Year3 $ 300, 000 (210, 000) (30, 000) (42, 000) (24,...
West Division Income Statement for Year3 $ 300, 000 (210, 000) (30, 000) (42, 000) (24, 000) (78, 000) Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs $(84, 000) Net loss Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase...
Okoboji Company manufactures wooden canoes, and has four operating divisions: East, West, North, and South. Each...
Okoboji Company manufactures wooden canoes, and has four operating divisions: East, West, North, and South. Each division manufactures a unique model of canoe. During the first quarter of 2017, total net operating income was $70,000. A breakdown by division was as follows: East West North South Sales $ 550,000 $750,000 $950,000 $450,000 COGS 460,000 480,000 575,000 400,000 S & A expenses 120,000 220,000 250,000 125,000 Net Op. Income $ ( 30,000) $ 50,000 $125,000 $ (75,000) An...
Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported...
Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from certions of $12.700 d divisional results: o Division III TV Sales $509,500 $418,600 $313,300 $179,300 Cost of goods sold 289,700 249,000 266,600 154,800 Selling and administrative expenses 60,100 75,400 67,400 75,000 Income (loss) from operations $159,700 594,200 $(20,700) S(50,500) The analysis reveals the following percentages of variable costs in each division 1 Cost of goods sold 70% Selling and administrative expenses...
Pina Company has four operating divisions. During the first quarter of 2017, the company reported aggregate...
Pina Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $212,300 and the following divisional results. 1 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $254,000 204,000 69,700 $(19,700) Division II III $199,000 $501,000 190,000 301,000 61,000 57,000 $ (52,000) $143,000 IV $443,000 247,000 55,000 $141,000 Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses...
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent...
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $105,000. Division sales for the year were $1,110,000 and its variable costs were $975,000. The foed costs of the division were $220,000. If the windows division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Gion's operating income from eliminating this business segment would be: - Ο $7.200 decrease Ο $8,000 increase Ο $143,000 decrease...
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent...
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,000. The division sales for the year were $941,000 and the variable costs were $465,000. The fixed costs of the division were $517,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be: Multiple Choice O $269,200 increase O $476,000 decrease...
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: 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...
P20-5A Prepare incremental analysis concerming.elimination of divisions Brislin Company has four operating divisions. During the first...
P20-5A Prepare incremental analysis concerming.elimination of divisions Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results. Division II $500,000 300,000 60,000 IV $200,000 Sales $250,000 200,000 75,000 $450,000 250,000 Cost of goods sold Selling and administrative expenses Income (loss) from operations 192,000 60,000 50,000 ($25,000) ($52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. II III IV Cost...
Perez Transport Company divides its operations Into four divisions. A recent Income statement for its West Division follows: PEREE TRANSPORT COMPANY Went Division Income Statement for the Year 2019 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 610,000 (460,000) (61,000) (81,000) (51,000) (141,000) $(184,000) Required a. By how much would companywide Income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able...
Rundle Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. RUNDLE TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 620,000 (470,000) (62,000) ( 82,000) (52,000) (142,000) $(188,000) Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able...
West Division Income Statement for Year3 $ 300, 000 (210, 000) (30, 000) (42, 000) (24, 000) (78, 000) Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs $(84, 000) Net loss Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase...
Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from certions of $12.700 d divisional results: o Division III TV Sales $509,500 $418,600 $313,300 $179,300 Cost of goods sold 289,700 249,000 266,600 154,800 Selling and administrative expenses 60,100 75,400 67,400 75,000 Income (loss) from operations $159,700 594,200 $(20,700) S(50,500) The analysis reveals the following percentages of variable costs in each division 1 Cost of goods sold 70% Selling and administrative expenses...
Pina Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $212,300 and the following divisional results. 1 Sales Cost of goods sold Selling and administrative expenses Income (loss) from operations $254,000 204,000 69,700 $(19,700) Division II III $199,000 $501,000 190,000 301,000 61,000 57,000 $ (52,000) $143,000 IV $443,000 247,000 55,000 $141,000 Analysis reveals the following percentages of variable costs in each division. Cost of goods sold Selling and administrative expenses...
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $105,000. Division sales for the year were $1,110,000 and its variable costs were $975,000. The foed costs of the division were $220,000. If the windows division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Gion's operating income from eliminating this business segment would be: - Ο $7.200 decrease Ο $8,000 increase Ο $143,000 decrease...
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,000. The division sales for the year were $941,000 and the variable costs were $465,000. The fixed costs of the division were $517,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be: Multiple Choice O $269,200 increase O $476,000 decrease...
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...
P20-5A Prepare incremental analysis concerming.elimination of divisions Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results. Division II $500,000 300,000 60,000 IV $200,000 Sales $250,000 200,000 75,000 $450,000 250,000 Cost of goods sold Selling and administrative expenses Income (loss) from operations 192,000 60,000 50,000 ($25,000) ($52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. II III IV Cost...
Most questions answered within 3 hours.
-
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 29 minutes ago -
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 18 minutes ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 28 minutes ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 30 minutes ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 46 minutes ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 54 minutes ago -
Using either a FMECA approach or some other appropriate RCA
tool, identify five risk treatment actions...
asked 55 minutes ago -
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 1 hour ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 1 hour ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 1 hour ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 1 hour ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 1 hour ago