Based on the income statements shown below, which division has the cost structure with the highest operating leverage?     Soft Drinks Bottled Water Fruit Juices   Revenue $50,000 $50,000 50,000   Variable costs (10,000) (5000) (30,000)   Contribution margin 40,000 45,000 20,000   Fixed costs (30,000) (40,000) (10,000)   Net income $10,000 $5000 10,000

Shirley Incorporated has three divisions, King, West and Gold. All common fixed costs are unavoidable. Following is the segmented income statement for the previous year: Sales revenue Variable costs Contribution margin Direct fixed costs Segment margin Common fixed costs (allocated) Net operating income (loss) King $ 1,040,000 312,000 $ 728,000 104,000 $ 624,000 391,000 $ 233,000 Required: a. What would Shirley's net income (loss) be if the West Division were dropped? b. What would Shirley's net income (loss) be if the Gold Division were dropped? Complete this question by entering your answers in the tabs below. Required A Required B What would Shirley's net income (loss) be if the West Division were dropped? Gold $426,000 251,340 $ 174,660 48.000 $ 126,660 159,375 $ (32,715) Total $ 2,048,000 889,260 $ 1,158,740 192,000 $ 966,740 763,000 $ 203,740

ed Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From S1 52 $1 S1 S2 P1 P2 20% $2 20% $ 220,000 74,000 61,000 175,000 To P1 30% ? The direct operating costs of the departments (including both variable and fixed costs) are: Required 1 Required 2 P2 Production department 1 Production department 2 ?% Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method. 40 Complete this question by entering your answers in the tabs below. $ $ Determine the total cost of P1 and P2 using the reciprocal method. (Do not round intermediate calculations. Round your final answers to whole dollars.) Required 3 Total Cost Allocated 183,548 346,458 < Required 2

The following information is available for Diva Footwear’s segments:                                                                    Platform Shoes      Athletic Shoes      Boots Sales                                          $120,000                  $420,000          $360,000 Variable costs                                64,000                   220,000            140,000 Contribution margin                       56,000                    200,000            220,000 Direct fixed costs                           45,000                      70,000              90,000 Allocated fixed costs                     20,000                       70,000              60,000 Net income                                ($  9,000)                    $  60,000         $  70,000   Diva Footwear normally sells boots for $90 per pair. An exporter has approached Diva about buying 1,000 pairs of boots for a one-time export deal for $85 per pair. Diva can avoid $5.00 per pair of the normal variable cost on…

Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Soft Drinks $ 64,000 Bottled Water Fruit Juices $ 64,000 $ 64,000 (16,000) (8,000) (36,000) 一開 48,000 28,000 (10,080) $ 17,920 Revenue Variable costs Contribution margin Fixed costs Net income Multiple Choice Bottled Water. Fruit Juices. Soft Drinks. (37,920) $ 10,080 The three divisions have identical operating leverage. 56,000 (47,920) $ 8,080

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (In percentages) to the other departments is: From 51 52 S1 S1 S2 P1 P2 20% $ 250,000 80,000 67,000 205,000 To S2 20% P1 • P2 30% ? The direct operating costs of the departments (including both variable and fixed costs) are: ?% 48 Production department 1 Production department 2 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated Required 3

Vikram Bhai

Guava Corporation has two divisions, Beverages and Snacks. Here are data for the most recent year: Total company Sales Variable costs Contribution margin Traceable fixed costs Segment margin O $720,000 O $750,000 O $760,000 O $780.000 ? O None of the above $390,000 ? ? ? Beverages ? $180,000 ? $150,000 $(30,000) Guava's total company operating income is $45,000 and its common fixed costs are $75,000. What are Guava's total company sales? ? Snacks $300,000 $210,000 ? ?