Question
In: Accounting
Michaels Company segments its income statement into its East and West Divisions. The company’s overall sales,...
Michaels Company segments its income statement into its East and West Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $600,000, 50%, and $50,000, respectively. The West Division's contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The East Division's segment margin is $70,000. The company has $60,000 of common fixed costs that cannot be traced to either division.
Required:
Prepare an income statement for Michaels Company that uses the contribution format and is segmented by divisions.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
Shannon Company segments its income statement into its North and
South Divisions. The company’s overall sales, contribution margin
ratio, and net operating income are $990,000, 36%, and $19,800,
respectively. The North Division’s contribution margin and
contribution margin ratio are $132,000 and 40%, respectively. The
South Division’s segment margin is $151,800. The company has
$227,700 of common fixed expenses that cannot be traced to either
division.
Required:
Prepare an income statement for Shannon Company that uses the
contribution format and is...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
Shannon Company segments its income statement into its North and
South Divisions. The company’s overall sales, contribution margin
ratio, and net operating income are $1,050,000, 40%, and $21,000,
respectively. The North Division’s contribution margin and
contribution margin ratio are $154,000 and 44%, respectively. The
South Division’s segment margin is $175,000. The company has
$262,500 of common fixed expenses that cannot be traced to either
division.
Required:
Prepare an income statement for Shannon Company that uses the
contribution format and is...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
Shannon Company segments its income statement into its North and
South Divisions. The company’s overall sales, contribution margin
ratio, and net operating income are $900,000, 30%, and $18,000,
respectively. The North Division’s contribution margin and
contribution margin ratio are $102,000 and 34%, respectively. The
South Division’s segment margin is $120,000. The company has
$180,000 of common fixed expenses that cannot be traced to either
division.
Required:
Prepare an income statement for Shannon Company that uses the
contribution format and is...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
Shannon Company segments its income statement into its North and
South Divisions. The company’s overall sales, contribution margin
ratio, and net operating income are $990,000, 36%, and $19,800,
respectively. The North Division’s contribution margin and
contribution margin ratio are $132,000 and 40%, respectively. The
South Division’s segment margin is $151,800. The company has
$227,700 of common fixed expenses that cannot be traced to either
division.
Required:
Prepare an income statement for Shannon Company that uses the
contribution format and is...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
Shannon Company segments its income statement into its North and
South Divisions. The company’s overall sales, contribution margin
ratio, and net operating income are $540,000, 50%, and $43,200,
respectively. The North Division’s contribution margin and
contribution margin ratio are $157,500 and 75%, respectively. The
South Division’s segment margin is $44,000. The company has $81,000
of common fixed expenses that cannot be traced to either
division.
shannon company segments its income statement into its North and South Divisions. The company's overall sales,...
shannon company segments its income statement into its North and
South Divisions. The company's overall sales, contribution margin
ration, and net operating income are $1,020,000, 38%, and $20,400
respectively. The North Division's contribution margin and
contribution margin ratio are $142,800 and 42% respectively. The
south Division's segment margin is $163,200. The company has
$244,800 of common fixed expenses that cannot be traced to either
divisions. Prepare an income statement for Shannon Company that
uses the contribution format and is segmented...
Tennessee Company is geographically segmented into two divisions – East and West. The company’s income statement...
Tennessee Company is geographically segmented into two divisions
– East and West. The company’s income statement for the last month
is presented below:
Total Company
Division
% of sales
West
% sales
East
% sales
Sales
$8,500,000
$4,675,000
$3,825,000
Variable expenses
3,395,750
1,636,250
1,759,500
Contribution margin
$5,104,250
60%
$3,038,750
65%
$2,065,500
54%
Total Fixed expenses
3,825,000
45%
1,912,500
41%
1,912,500
50%
Net income
$1,279,250
15%
$1,126,250
24%
$153,000
4%
Management is concerned with the reported results, especially
the East Division’s...
Shannon Company segments its income statement in its North and South Division. The company’s overall sales,...
Shannon Company segments its income statement in its North and
South Division. The company’s overall sales, contribution margin
ratio, and net operating income are $420,000, 50%, and $21,000,
respectively. The North Division’s contribution margin and
contribution margin ratio are $112,500 and 75%, respectively. The
South Division’s segment margin is $35,000. The company has $63,000
of common fixed expenses that cannot be traced to either division.
Required: Prepare an income statement for Shannon Company that uses
the contribution format and is...
Dudley Transport Company divides its operations into four divisions. A recent income statement for its West...
Dudley Transport Company divides its operations into four
divisions. A recent income statement for its West Division
follows:
DUDLEY TRANSPORT COMPANY
West
Division
Income Statement for the Year 2019
Revenue
$
300,000
Salaries for drivers
(210,000
)
Fuel expenses
(30,000
)
Insurance
(42,000
)
Division-level
facility-sustaining costs
(24,000
)
Companywide facility-sustaining
costs
(78,000
)
Net loss
$
(84,000
)
Required
By how much would companywide income increase or decrease if
West Division is eliminated? Should West Division be
eliminated?
Assume...
Crossfire Company segments its business into two regions—East and West. The company prepared a contribution format...
Crossfire Company segments its business into two regions—East
and West. The company prepared a contribution format segmented
income statement as shown below:
Total Company
East
West
Sales
$
900,000
$
600,000
$
300,000
Variable expenses
675,000
480,000
195,000
Contribution margin
225,000
120,000
105,000
Traceable fixed expenses
141,000
50,000
91,000
Segment margin
84,000
$
70,000
$
14,000
Common fixed expenses
59,000
Net operating income
$
25,000
Required:
1. Compute the companywide break-even point in dollar sales.
2. Compute the break-even point...
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