Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable manufacturing costs Fixed manufacturing costs Gross Profit Operating Expenses Variable operating expenses Fixed operating expenses Net income Book Division $ 7,900,000 2,100,000 1,087,500 $4,712,500 145,000 2,926,000 $ 1,641,500 Magazine Division $3,342,300 1,046,900 1,225,800 $ 1,069,600 212,700 1,194,600 $ (337,700) Total $ 11,242,300 3,146,900 2,313,300 $5,782,100 357,700 4,120,600 $ 1,303,800 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each diuicions

Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable manufacturing costs Fixed manufacturing costs Gross Profit Operating Expenses Variable operating expenses Fixed operating expenses Net income Book Division $ 7,900,000 2,100,000 1,087,500 $4,712,500 145,000 2,926,000 $ 1,641,500 Magazine Division $3,342,300 1,046,900 1,225,800 $ 1,069,600 212,700 1,194,600 $ (337,700) Total $ 11,242,300 3,146,900 2,313,300 $5,782,100 357,700 4,120,600 $ 1,303,800 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each diuicions

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Anderson Publishing has two divisions: Book Publishing & Magazine Publishing. The Magazine division has been losing money for the last 5 years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Magazine Division Total Book Division $ 7,810,000 $ 3,310,000 $11,120,e00 Sales Revenue Cost of Goods sold Variable costs Fixed costs 3,003,000 278,600 2,003,000 77,600 $ 5,729,400 1,000,000 201,eee 2,109,e0e Gross Profit Operating Expenses Variable $ 7,838,400 136,000 3,917,000 $ 1,676,400 199,000 2,190,000 $ 335,000 6,107,000 $ 1,396,400 Fixed (280,eee) Net income The variable operating expenses are directly attributable to the division. Of the total fixed costs (manufacturing and operating), $4,001,000 are shared between the divisions, allocated $2,812,000 to the Book Division and the remaining to the Magazine Division The remainder of the fixed costs are directly attributable to each division. Required: 1. Present the…
Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable manufacturing costs Fixed manufacturing costs Gross Profit Operating Expenses Variable operating expenses Fixed operating expenses Net income Book Division $ 7,960,000 2,160,000 1,093,500 $4,706,500 151,000 2,932,000 $ 1,623,500 Contribution Margin Segment Margin Book Division Magazine Division $ 3,367,700 Complete this question by entering your answers in the tabs below. 1,076,800 1,241,200 $ 1,049,708 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between the two divisions Required: Required 1 Required 2 Compute the contribution margin and segment margin…
Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson’s information about the two divisions is as follows: Book Division Magazine Division Total Sales Revenue $ 7,840,000 $ 3,316,900 $ 11,156,900 Cost of Goods sold Variable manufacturing costs 2,040,000 1,016,900 3,056,900 Fixed manufacturing costs 1,081,500 1,210,300 2,291,800 Gross Profit $ 4,718,500 $ 1,089,700 $ 5,808,200 Operating Expenses Variable operating expenses 139,000 203,900 342,900 Fixed operating expenses 2,920,000 1,191,200 4,111,200 Net income $ 1,659,500 $ (305,400) $ 1,354,100 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between the two divisions. Required: Present the financial information in…
Anderson Publishing has two divisions: Book Publishing & Magazine Publishing. The Magazine division has been losing money for the last 5 years and Anderson is considering eliminating that division. Anderson’s information about the two divisions is as follows: Book Division Magazine Division Total Sales Revenue $ 7,800,000 $ 3,300,000 $ 11,100,000 Cost of Goods sold Variable costs 2,000,000 997,000 2,997,000 Fixed costs 1,077,500 1,200,000 2,277,500 Gross Profit $ 4,722,500 $ 1,103,000 $ 5,825,500 Operating Expenses Variable 135,000 198,000 333,000 Fixed 2,916,000 1,189,000 4,105,000 Net income $ 1,671,500 $ (284,000 ) $ 1,387,500 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attribute to each division. The remainder are common or shared between the…
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