Question 1

The Carlsbad Corporation produces and markets two types of electronic calculators: Model 4A and Model 5A.The following data were gathered on activities during the third quarter:   Required:
Prepare a segmented income statement for last quarter.The statement should provide sufficient detail to allow the company to evaluate the performance of the manager of each product line.

Accepted Answer

The answer of The Carlsbad Corporation produces and markets two...

Question 2

Koff Corporation has two divisions: Garden Division and Farm Division.The following report is for the most recent operating period:  Required:
a.What is the Garden Division's break-even in sales dollars?
b.What is the Farm Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?
d.What would be the company's overall net operating income if the company operated at its two division's break-even points?

Accepted Answer

The answer of Koff Corporation has two divisions: Garden Division...

Question 3

Petteway Corporation has two divisions: Home  Division and Commercial Division.The following report is for the most recent operating period:  The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a.What is the Home Division's break-even in sales dollars?
b.What is the Commercial Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

The answer of Petteway Corporation has two divisions: Home ...

Question 4

Omstadt Corporation produces and sells only two products that are referred to as RIPS and PITS.Production is "for order" only, and no finished goods inventories are maintained; work in process inventories are negligible.The following data relate to last month's operations:  $36,000 of the manufacturing overhead assigned to RIPS and $72,000 of that assigned to PITS is fixed.The balance of the overhead is variable.Selling expenses consist entirely of commissions paid as a percentage of sales.Direct labor is completely variable.Administrative expenses are fixed and cannot be traced to the products but have been arbitrarily allocated to the products.
Required:
Prepare a segmented income statement, in total and for the two products.Use the contribution approach.

Accepted Answer

The answer of Omstadt Corporation produces and sells only two...

Question 5

Fausnaught Corporation has two major business segments--Retail and Wholesale.In October, the Retail business segment had sales revenues of $730,000, variable expenses of $409,000, and traceable fixed expenses of $117,000.During the same month, the Wholesale business segment had sales revenues of $400,000, variable expenses of $220,000, and traceable fixed expenses of $48,000.Common fixed expenses totaled $218,000 and were allocated as follows: $122,000 to the Retail business segment and $96,000 to the Wholesale business segment.

Required:
Prepare a segmented income statement in the contribution format for the company.Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Fausnaught Corporation has two major business segments--Retail...

Question 6

Clouthier Corporation has two divisions: Home Division and Commercial Division.The following report is for the most recent operating period:  The company's common fixed expenses total $29,700.
Required:
a.What is the Home Division's break-even in sales dollars?
b.What is the Commercial Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

The answer of Clouthier Corporation has two divisions: Home Division...

Question 7

Zable Corporation has two divisions: Town Division and Country Division.The following report is for the most recent operating period:  The company's common fixed expenses total $68,320.
Required:
a.What is the Town Division's break-even in sales dollars?
b.What is the Country Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

The answer of Zable Corporation has two divisions: Town Division...

Question 8

Spiess Corporation has two major business segments--Apparel and Accessories.Data concerning those segments for December appear below:  Common fixed expenses totaled $309,000 and were allocated as follows: $142,000 to the Apparel business segment and $167,000 to the Accessories business segment.

Required:
Prepare a segmented income statement in the contribution format for the company.Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Spiess Corporation has two major business segments--Apparel...

Question 9

Therrell Corporation has two divisions: Bulb Division and Seed Division.The following report is for the most recent operating period:  The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a.What is the Bulb Division's break-even in sales dollars?
b.What is the Seed Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

The answer of Therrell Corporation has two divisions: Bulb Division...

Question 10

Kneeland Corporation has two divisions: Grocery Division and Convenience Division.The following report is for the most recent operating period:  The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a.What is the Grocery Division's break-even in sales dollars?
b.What is the Convenience Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?
d.What would be the company's overall net operating income if the company operated at its two division's break-even points?

Accepted Answer

The answer of Kneeland Corporation has two divisions: Grocery Division...

Question 11

Data for September concerning Greenberger Corporation's two major business segments--Fibers and Feedstocks--appear below:  Common fixed expenses totaled $344,000 and were allocated as follows: $175,000 to the Fibers business segment and $169,000 to the Feedstocks business segment.
Required:
Prepare a segmented income statement in the contribution format for the company.Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Data for September concerning Greenberger Corporation's two...

Quiz 7: Variable Costing and Segment Reporting: Tools for Management