Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: $770,000 Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses 480,000 Net loss 290,000 215,000 123,000 338,000 $(48,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $40,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 10%, the effect on net income (loss) would be $Answer

Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: $770,000 Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses 480,000 Net loss 290,000 215,000 123,000 338,000 $(48,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $40,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 10%, the effect on net income (loss) would be $Answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8PA: The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K):...

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The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K): For each segment and each year, calculate intersegment sales (another name for transfer sales) as a percentage of total sales, Using Microsoft Excel or another spreadsheet application, create a clustered column graph to show the 2016 and 2017 percentages for each division. Comment on your observations of this data. How might a division sales manager use this data?
Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses Net loss $770,000 480,000 290,000 215,000 123,000 338,000 $(48.000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $40,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 10%, the effect on net income (loss) would be $
Analyzing Operational ChangesOperating results for department B of Delta Company during 2016 are as follows: Sales $530,000 Cost of goods sold 378,000 Gross profit 152,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(34,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $40,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 15%, the effect on net income (loss) would be $Answer.
Analyzing Operational ChangesOperating results for department B of Delta Company during 2016 are as follows: Sales $550,000 Cost of goods sold 378,000 Gross profit 172,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(14,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $60,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 15%, the effect on net income (loss) would be $______
Analyzing Operational ChangesOperating results for department B of Delta Company during 2016 are as follows: Sales $538,000 Cost of goods sold 378,000 Gross profit 160,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(26,000) Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $17,000 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. Sales Answer Cost of goods sold Answer Gross profit Answer Direct expenses Answer Common expenses Answer Total expenses Answer Net income (loss) Answer
Analyzing Operational ChangesOperating results for department B of Shaw Company during 2016 are as follows: Sales $755,000 Cost of goods sold 480,000 Gross profit 275,000 Direct expenses 215,000 Common expenses 123,000 Total expenses 338,000 Net loss $(63,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $35,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 10%, the effect on net income (loss) would be $Answer
Analyzing Operational ChangesOperating results for department B of Delta Company during the year are as follows: Sales $538,000 Cost of goods sold 378,000 Gross profit 160,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(26,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $48,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 15%, the effect on net income (loss) would be $________?
Not Graded Analyzing Operational ChangesOperating results for department B of Delta Company during 2016 are as follows: Sales $547,000 Cost of goods sold 378,000 Gross profit 169,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(17,000) Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $19,500 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. Sales Answer Cost of goods sold Answer Gross profit Answer Direct expenses Answer Common expenses Answer Total expenses Answer Net income (loss) Answer
Operating results for department B of Shaw Company during 2016 are as follows: Sales $755,000 Cost of goods sold 480,000 Gross profit 275,000 Direct expenses 215,000 Common expenses 123,000 Total expenses 338,000 Net loss $(63,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $35,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 10%, the effect on net income (loss) would be $Answer
Sales Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: $547,000 Cost of goods sold 378,000 Gross profit 169,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(17,000) Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $19,500 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign to indicate a net loss answer, otherwise do not use negative signs with your answers.
Operating results for Division A of Alpha Company during 2019 are as follows: Sales $480,000 Cost of goods sold 297,600 Gross profit 182,400 Direct expenses 32,400 Common expenses 54,000 Total expenses 86,400 Net income $96,000 If Division A would maintain the same quantity of product sold while raising selling prices by 6% and making additional advertising expenditures of $36,000, what would be the effect on the Division’s net income? (Ignore income taxes in your calculations.) Select one: a. Net income would decrease by $7,200 b. Net income would increase by $28,800 c. Net income would increase by $36,000 d. Net income would decrease by $28,800 e. Net income would increase by $7,200
Operating results for Division A of Alpha Company during 2019 are as follows: Sales $560,000 Cost of goods sold 347,200 Gross profit 212,800 Direct expenses 37,800 Common expenses 63,000 100,800 $112,000 Total expenses Net income If Division A would maintain the same quantity of product sold while raising selling prices by 14.000000000000002%, increasing direct labor costs by $28,000 and implementing a new marketing campaign at a cost of $14,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.) Select one: O a. Net income would increase by $36,400 b. Net income would increase by $28,000 c. Net income would decrease by $36,400 d. Net income would increase by $42,000 e. None of these options are correct. O O O