Blossom Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. Sales Variable costs Contribution margin Fixed costs Net income Tablet Division $671,000 496,540 $174,460 MP3 Player Division $429,000 253,110 $175,890 Total $1,100,000 749,650 350,350 128,037 $222,313
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- Blossom Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. Sales Variable costs Contribution margin Fixed costs Net income Tablet Division $671,000 496,540 $174,460 MP3 Player Division $429,000 253,110 $175,890 Total $1,100,000 749,650 350,350 128,037 $222,313Indigo Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Computers VG Systems Total Sales $720,000 $480,000 $1,200,000 Variable costs 504,000 384,000 888,000 Contribution margin $216,000 $96,000 312,000 Fixed costs 255,060 Net income $56,940 (a) Determine the sales mix and contribution margin ratio for each division. Sales mix Computers VG SystemsCrane, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Units sold Revenue Less variable costs Less direct fixed costs Less allocated fixed costs Net income Bud 2,700 $63,000 28,800 12,600 5,400 $16,200 Wise 4,500 $45,000 23,400 17,100 9,000 $(4,500) Er 1,800 $36,000 14,400 10,800 3,600 $7,200 Total 9,000 $144,000 66,600 40,500 18,000 $18,900 All of the allocated costs will continue even if a division is discontinued. Crane allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Crane is concerned that it should be discontinued. Crane thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same.
- Alydar, Inc., manufactures and sells automotive tools through three divisions: Eastern, Southern, and International. Each division is evaluated as a profit center. Data for each division for last year are as follows: Eastern Southern International Sales $3,150,000 $987,000 $6,500,000 Cost of goods sold 1,580,000 680,000 4,100,000 Selling and administrative expenses 337,000 280,000 620,000 Alydar, Inc., had corporate administrative expenses equal to $585,000; these were not allocated to the divisions. Required: 1. Prepare a segmented income statement for Alydar, Inc., for last year. Alydar, Inc. Segmented Income Statement For last year Eastern Total Southern InternationalPersonal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter’s activity are presented below. Tablet Division MP3 Player Division Total Sales $755,200 $424,800 $1,180,000 Variable costs 543,744 246,384 790,128 Contribution margin $211,456 $178,416 389,872 Fixed costs 133,812 Net income $256,060 Determine the sales level in dollars for each division at the break-even point. (Round computations to 2 decimal places and final answers to 0 decimal places, e.g. 1,526 Do not give answer in image formatePetoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $1,280 $185 $330 $1,795 Less: Variable expenses 1,115 45 264 1,424 Contribution margin $165 $140 $66 $371 Less direct fixed expenses: Depreciation 50 15 11 76 Salaries 95 85 116 296 Segment margin $20 $40 $(61) $-1 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different supervisor whose position would remain if the associated product were dropped. Required: CONCEPTUAL CONNECTION: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000" rather than "15".
- Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period: Sales Variable expenses Traceable fixed expenses The common fixed expenses of the company are $103,360. The Retail Division's break-even sales is closest to: Multiple Choice O O O $421,526 $285,526 Total Company $ 608,000 $ 185,530 $ 303,000 $584,815 $369,408 Retail Division $ 375,000 $ 90,000 $ 217,000 Wholesale Division $ 233,000 $ 95,530 $ 86,000Market Inc. has two divisions, Telbot and Heather Following is the Income statement for the past month 27 Total Talbot Beather $217, 500 $217,500 $435,000 195,750 65,250 261,000 21,750 152, 250 174,000 78, 300 78,300 156, 600 Sales Variable Costs Contribution Margin Fired Costs (allocated) Profit Margin $(56,550) $ 73,950 $ 17,400 What would Marker's proft margih be if the Talbot division was dropped and all fixed costs are unavoidable? Mutiole Choice $56.550 loss $4.350 loss $73.950 profitBlossom Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter's operating profits, by product, and for the company as a whole, were as follows: Square Round Total Sales revenue $11,000 $6,600 $17,600 Variable expenses 4,400 2,900 7,300 Contribution margin 6,600 3,700 10,300 Fixed expenses 2,750 4,200 6,950 Operating income $ 3,850 $(500) $ 3,350 Forty percent of the Round Game's fixed costs could have been avoided if the game had not been produced or sold. If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as a whole? Operating income without round $
- Nicholas Technologies operates two divisions. Hardware Services and Software Services. During the current month, the two divisions reported the following results. Hardware Sales Varlable costs (as a percentage of sales) Traceable fixed costs Software $ 850, 000 45% $ 125, 000 $ 660, 000 40% $ 250,000 In addition, fixed costs common to both divisions amounted to $228,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.) NICHOLAS TECHNOLOGIES Responsibility Income Statement For the Current Month Entire Company Hardware Servicos Division Software Services Division Percent of Sales Dollars Dollars Percent of Sales Dollars Percent of SalesMad City Flash sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Computers VG Systems Total Sales $800,000 $200,000 $1,000,000 Variable costs 480,000 140,000 620,000 Contribution margin $320,000 $ 60,000 380,000 Fixed costs 228,000 Net income $ 152,000 Instructions (show calculations): a) Determine the sales mix, and contribution margin ratio for each division. b) Calculate the company's weighted-average contribution margin ratio. C) Calculate the company's break-even point in dollars. d) Determine the sales level, in dollars, for each division at the break-even point.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