Calculate new segment Margin of outlet B
| Outlet B | |
| Sales (800000+125000) | 925000 |
| Variable expense (480000/800000*925000) | -555000 |
| Sales commission (925000*5%) | -46250 |
| Fixed cost (220000-200000) | -20000 |
| Segment margin of outlet B | 303750 |
Venkman, Inc.'s financial information for the most recent month is given below: TOTAL $1.200,000 $768,000 OUTLETA...
Sales Venkman, Inc.'s financial information for the most recent month is given below: TOTAL OUTLET A $1,200,000 $400,000 Variable Expenses $768,000 $288,000 Traceable Fixed $304,000 $84,000 Expenses Common Fixed $98,000 Expenses OUTLET B $800,000 $480,000 $220,000 Sales in Outlet B increase by S120,000 as a result of a S46,000 expenditure in fixed expenses. By how much with Outlet B's segment margin increase? (Enter your answer as a whole number. Include a negative sign where appropriate.)
Venkman, Inc.'s financial information for the most recent month is given below:TOTALOUTLET AOUTLET BSales$1,200,000$400,000$800,000Variable Expenses$768,000$288,000$480,000Traceable Fixed Expenses$304,000$84,000$220,000Common Fixed Expenses$98,000 A proposal has been made that will lower variable expenses in Outlet A to 68% of sales. However, this reduction can only be accomplished by an increase in fixed expenses of $32,000. If this proposal is implemented, and sales remain constant, what is Outlet A's new segment margin?
The most recent monthly income statement for Kennaman Stores is given below: Total Store I Store II Sales Total $2,000,000 Store 1 $1,200,000 Store 2 $800,000 Less variable expenses Total 1,200,000 Store 1 840,000 Store 2 360,000 Contribution margin Total 800,000 Store 1 360,000 Store 2 440,000 Less traceable fixed expenses Total 400,000 Store 1 220,000 Store 2 180,000 Segment margin Total 400,000 Store 1 140,000 Store 2 260,000 Less common fixed expenses Total 300,000 Store 1 180,000 Store 2...
Pong Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $159,100 $65,700 $93,400 Variable expenses 59,279 32,193 27,086 Contribution margin 99,821 33,507 66,314 Traceable fixed expenses 69,100 20,800 48,300 Segment margin 30,721 $12,707 $18,014 Common fixed expenses 24,800 Net operating income $ 5,921 If Store B sales increase by $47,400 with no change in fixed expenses, the overall company net operating income should:
. The most recent monthly income statement for Sun City Stores is given below: Total Store A Store B Sales $1,000,000 $400,000 $600,000 Variable expenses 580,000 160,000 420,000 Contribution margin 420,000 240,000 180,000 Traceable fixed expenses 300,000 100,000 200,000 Store segment margin 120,000 140,000 (20,000) Common fixed expenses 50,000 20,000 30,000 Net operating income $70,000 $120,000 $($50,000) Due to its poor showing, consideration is being given to closing Store B. Studies show that if Store B is closed, one-fourth...
Creaston Limited’s most recent monthly contribution format
income statement is given below:
CREASTON LIMITED
Income Statement
For the Month Ended May 31
Sales
$900,000
100.0%
Variable expenses
408,000
45.3
Contribution margin
492,000
54.7
Fixed expenses
465,000
51.7
Operating income
$ 27,000
3.0%
Management is disappointed with the company’s performance and is
wondering what can be done to improve profits. By examining sales
and cost records, you have determined the following:
The company is divided into two sales territories—Central and
Eastern....
The most recent monthly income statement for Sun Shine Corporation is given below:TotalStore AStore BSales$1,000,000$400,000$600,000Variable expenses580,000160,000420,000Contribution margin420,000240,000180,000Traceable fixed expenses300,000100,000200,000Store segment margin120,000140,000(20,000)Common fixed expenses50,00020,00030,000Net operating income$70,000$120,000$(50,000)Due to its poor showing, consideration is being given to closing Store B. Studies show that if Store B is closed, one fourth of its traceable fixed expenses will continue unchanged. The studies also show that closing Store B would result in a 10 percent decrease in sales in Store A. The company allocates common fixed...
Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation: 16,900 Number of units produced Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ 109 77 12 $997, 100 $388,709 The company had no beginning or ending inventories. Required: a. Compute the unit product cost under absorption costing. b. Compute the unit...
Vulcan Company's contribution format income statement for June is given below: Vulcan Company Income Statement For the Month Ended June 30 $800,000 308,000 492,000 465,000 $ 27,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following: a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded...
Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses $ 800,000 300,000 500,000 460,000 $ 40,000 Net operating income Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following: a. The company is divided into two sales territories-Northern and Southern. The Northern Territory...