Analyzing Operational Changes Operating 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 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 $

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

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 Deluxe Division, a profit center of Riley Manufacturing Company, reported the following data for the first quarter of 2016:Sales                                                           $9,000,000Variable costs                                                     6,300,000Controllable direct fixed costs                      1,200,000Noncontrollable direct fixed costs                 530,000Indirect fixed costs                                                 300,000Instructions(a) Prepare a performance report for the manager of the Deluxe Division.(b) What is the best measure of the manager’s performance?  Why?(c) How would the responsibility report differ if the division was an investment center?

Accounting. The tiger company collected the following

Required information [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets ROI At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales $ 1,800,000 435,000 1,365,000 1,005,000 $360,000 $ 1,200,000 $360,000 $ 216,000 The company's minimum required rate of return is 10% Contribution margin ratio Fixed expenses 70 of sales. 6. What is the ROI related to this year's investment opportunity?

Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales Cost of goods sold А В C $164,000 $250,000 $245,000 (84,000) (29,000) |(130,000) (18,000) (80,000) (22,000) Sales commissions Contribution margin 143,000 16,000 137,000 General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) (37,000) (32,000) (34,000) (5,000) (11,000) 0 (26,000) $ 94,000 $ 109,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. PATTERSON COMPANY Comparative Income Statements for the Year 2014 Eliminate Seg. A Decision Keep Seg. A Sales Cost…

The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.68 million. Interest expense is expected to remain unchanged at $35,000​, and the firm plans to pay $66,000 in cash dividends during 2016. Metroline​ Manufacturing's income statement for the year ended December​ 31, 2015, is given along with a breakdown of the​ firm's cost of goods sold and operating expenses into their fixed and variable components.   a. Use the ​percent-of-sales method to prepare a pro forma income statement for the year ended December​ 31, 2016. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December​ 31, 2016. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2016​ income? Explain why.

Coolbrook Company has the following information available for the past year:       River Division   Stream Division Sales revenue $ 1,215,000   $ 1,818,000 Cost of goods sold and operating expenses   897,000     1,287,000 Net operating income $ 318,000   $ 531,000 Average invested assets $ 1,160,000   $ 1,500,000       The company’s hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 9 percent. c. The company invests $259,000 in each division, an amount that generates $105,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent.