The following Information was taken from the segmented Income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Central Valley Division $235,000 120,000 75,000 20,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Multiple Choice $10,000. Restin, Inc. $750,000 410,000 $25,000. 210,000 60,000 In addition, the company incurred common fixed costs of $18,000. Assuming use of a responsibility accounting system, which of the following amounts should be used to evaluate the performance of the Los Angeles division manager? Division $200,000 110,000 65,000 15,000 Division $325,000 180,000 70,000 25,000

The following Information was taken from the segmented Income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Central Valley Division $235,000 120,000 75,000 20,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Multiple Choice $10,000. Restin, Inc. $750,000 410,000 $25,000. 210,000 60,000 In addition, the company incurred common fixed costs of $18,000. Assuming use of a responsibility accounting system, which of the following amounts should be used to evaluate the performance of the Los Angeles division manager? Division $200,000 110,000 65,000 15,000 Division $325,000 180,000 70,000 25,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $358,929
ume a company with two divisions (A and B) prepared the following segmented income statement: A Total 507,000 260,000 247,000 180,000 67,000 43,000 24,000 IB Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 300,000 120,000 180,000 100,000 80,000 207,000 140,000 67,000 80,000 (13,000) The dollar sales required for the company to break even is closest to: O $455,102 $355,201 $300,000 O $400,000
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Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
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