Market Incorporated has two divisions, Talbot and Heather. The following is the income statement for the past month: Talbot Heather Total Sales revenue $ 262,500 $ 262,500 $ 525,000 Variable costs 228, 375 65, 625 294, 000 Contribution or segment margin*Footnote asterisk $ 34, 125 $ 196, 875 $ 231,000 Common fixed costs (allocated ) 101, 450 101, 450 202, 900 Net operating income (loss) $ (67,325) $ 95,425 $ 28, 100 * Footnote asteriskNote that there are no direct fixed costs. What would Market's income (loss) be if the Talbot Division was dropped and all common fixed costs are unavoidable?
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- Wade Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income S O $144,681 O $217,165 O $361,623 Total Company S O $267,367 591,000 275,580 315,420 193,000 122,420 66,010 56,410 $ The break-even in sales dollars for Division A is closest to: $ Division A 232,000 123,220 108,780 68,000 40,780 Division B $ 359,000 152,360 206,640 125,000 81,640 $The most recent monthly income statement for Headphones Manufacturing Company is given below: Department A Department B (S) 600,340 Total (S) 1,006,990 (S) Sales 406,650 Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 256.530 420.000 180,340 676,530 150,120 330,460 100,000 50,120 200.000 (19,660) 300,000 30,460 20.870 29.130 50,000 29,250 (48,790) (19,540) Due to its poor result, consideration is being given to closing Department B. Studies show that if Department B is closed, 20% of its traceable fixed expenses will continue unchanged. The studies also show that closing Department B would result in a 5 percent decrease in sales in Department A. The company allocates common fixed expenses to the departments on the basis of sales dollars. Required: c) The company has done a detailed investigation to the production in Department A. Currently, department produces 4 products as follow: A B Selling price per unit…Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: Alpha $165,000 S107, 250 S 89,100 Beta Sales Variable expenses Traceable fixed expenses $283, 500 $170, 900 S 87,700 The company's common fixed expenses total $86,500. The break-even in sales dollars for Alpha Division is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multple Choice $5074 $254,571 $78,500 $24743
- Snellville Co. reports the following data: Line Item Description Amount Sales $673,800 Variable costs (377,300) Contribution margin $296,500 Fixed costs (214,100) Operating income $82,400 Determine Snellville Co.’s operating leverage. Round your answer to one decimal place. fill in the blank 1 of 1Tucker Co. reports the following data: Line Item Description Amount Sales $911,900 Variable costs (611,000) Contribution margin $300,900 Fixed costs (219,600) Operating income $81,300 Determine Tucker Co.’s operating leverage. Round your answer to one decimal place.fill in the blank 1 of 1Market Inc. has two divisions, Telbot and Heather Following is the Income statement for the past month 27 Total Talbot Beather $217, 500 $217,500 $435,000 195,750 65,250 261,000 21,750 152, 250 174,000 78, 300 78,300 156, 600 Sales Variable Costs Contribution Margin Fired Costs (allocated) Profit Margin $(56,550) $ 73,950 $ 17,400 What would Marker's proft margih be if the Talbot division was dropped and all fixed costs are unavoidable? Mutiole Choice $56.550 loss $4.350 loss $73.950 profit
- Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income Total $ 266,600 154,800 111,800 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is.7,600 units?The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:Nuzum Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Total Division Division Company $557,000 $254,000 $303,000 144,910 412,090 172,720 239,370 273,000 128,000 145,000 139,090 94,690 M Sales Variable expenses Contribution margin Traceable fixed expenses 81', 280 63,630 Segment margin Common fixed expenses 94,370 51,510 $ 44,400 $ 1,540 $ 42,860 44,720 43,180 Net operating income Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to: (Round your intermediate calculations to 2 decimal places.)
- Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $587,000 $172,000 $415,000 Variable expenses 376,090 98,040 278,050 Contribution margin 210,910 73,960 136,950 Traceable fixed expenses 105,290 30,870 74,420 Segment margin 105,620 $ 43,090 $ 62,530 Common fixed expenses 68,550 Net operating income $ 37,070 The break-even in sales dollars for Division Q is closest to:Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 236,800 140,600 96,200 54,300 $ 41,900 Per Unit $32.00 19.00 $13.00 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,400 units?