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 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 $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8PB: The following revenue data were taken from the December 31, 2017, General Electric annual report...

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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 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 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 $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
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
The manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis). warehouse west store sales $18,920 $43,860 cost of goods sold 9,082 21,053 gross profit $9,838 $22,807 selling expenses 860 2,752 wages expense 4,730 15,351 costs allocated from corporate 2,838 4,386 Total expenses $8,428 $22,489 operating income/(loss) $ ? ? Operating Income/(loss) % ? ?
[The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 $ 87,000 $ 47,000 $ 83,000 Department P $ 69,000 Sales Expenses Avoidable Unavoidable Income (loss) Total expenses M N Department Department Department Department Department Department O P T Answer is complete and correct. Decision a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Keep Eliminate Keep 18,800 59,000 77,800 $ 9,200 Keep Eliminate 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) Department T $ 42,000 54,000 22,400 76,400 $ (34,400) Total $ 328,000 161,500 169,300 330,800 $ (2,800)