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Middleton Associates is a consulting firm that specializes in Information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below. Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Connon fixed expenses not traceable to offices Operating Income Required: Office Total Company Toronto Vancouver $950,000 100.ex $190,000 100x $760,000 100% 513,000 54.00 57,000 30 456,000 60 437,000 46.00 133,000 70 384,000 40 174,800 18.40 68,400 36 106,400 14 262,200 27.60 $64,600 34% $197,600 26% 190,000 20.00 $ 72,200 7.60% 1. By how much would the company's operating Income Increase if Vancouver Increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto Increase by $50.000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. Note: Round your percentage answers to 1 decimal place. Segments Total Company Toronto Vancouver Amount ˚ Amount Amount % Variable expenses Contribution margin $ 이 0.00 이 0.00 0 0.00 Traceable fedexpenses Office segment margin $ 이 000 $ 01 000 0 0.00 Common fed expenses not traceable to segments Operating income $ 이 0.00

Middleton Associates is a consulting firm that specializes in Information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below. Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Connon fixed expenses not traceable to offices Operating Income Required: Office Total Company Toronto Vancouver $950,000 100.ex $190,000 100x $760,000 100% 513,000 54.00 57,000 30 456,000 60 437,000 46.00 133,000 70 384,000 40 174,800 18.40 68,400 36 106,400 14 262,200 27.60 $64,600 34% $197,600 26% 190,000 20.00 $ 72,200 7.60% 1. By how much would the company's operating Income Increase if Vancouver Increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto Increase by $50.000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. Note: Round your percentage answers to 1 decimal place. Segments Total Company Toronto Vancouver Amount ˚ Amount Amount % Variable expenses Contribution margin $ 이 0.00 이 0.00 0 0.00 Traceable fedexpenses Office segment margin $ 이 000 $ 01 000 0 0.00 Common fed expenses not traceable to segments Operating income $ 이 0.00

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Middleton Associates is a consulting firm that specializes in Information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below. Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Connon fixed expenses not traceable to offices Operating Income Required: Office Total Company Toronto Vancouver $950,000 100.ex $190,000 100x $760,000 100% 513,000 54.00 57,000 30 456,000 60 437,000 46.00 133,000 70 384,000 40 174,800 18.40 68,400 36 106,400 14 262,200 27.60 $64,600 34% $197,600 26% 190,000 20.00 $ 72,200 7.60% 1. By how much would the company's operating Income Increase if Vancouver Increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto Increase by $50.000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. Note: Round your percentage answers to 1 decimal place. Segments Total Company Toronto Vancouver Amount ˚ Amount Amount % Variable expenses Contribution margin $ 이 0.00 이 0.00 0 0.00 Traceable fedexpenses Office segment margin $ 이 000 $ 01 000 0 0.00 Common fed expenses not traceable to segments Operating income $ 이 0.00
Transcribed Image Text:Middleton Associates is a consulting firm that specializes in Information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below. Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Connon fixed expenses not traceable to offices Operating Income Required: Office Total Company Toronto Vancouver $950,000 100.ex $190,000 100x $760,000 100% 513,000 54.00 57,000 30 456,000 60 437,000 46.00 133,000 70 384,000 40 174,800 18.40 68,400 36 106,400 14 262,200 27.60 $64,600 34% $197,600 26% 190,000 20.00 $ 72,200 7.60% 1. By how much would the company's operating Income Increase if Vancouver Increased its sales by $85,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto Increase by $50.000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. Note: Round your percentage answers to 1 decimal place. Segments Total Company Toronto Vancouver Amount ˚ Amount Amount % Variable expenses Contribution margin $ 이 0.00 이 0.00 0 0.00 Traceable fedexpenses Office segment margin $ 이 000 $ 01 000 0 0.00 Common fed expenses not traceable to segments Operating income $ 이 0.00
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