Grouper Chance Co. sells computers and video game systems. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: Sales Variable costs Contribution margin Fixed costs Net income Computers $644,000 386,400 $257,600 Sales mix VG Systems $276,000 Contribution margin ratio 193,200 $82,800 Total $920,000 579,600 Determine the sales mix and contribution margin ratio for each division. Computers 340,400 172,050 $168.350 70 % 60 % VG Systems Calculate the company's weighted-average contribution margin ratio. Weighted-average contribution margin ratio 30 % 30 % %

Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,766,100 1,243,888 522,212 640,000 $ (117,788) Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,600 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 $ 400,500 $ 120,000 T500 $ 162,000 $ 42,700 Total $ 562,500 162,700 518,688 $1,243,888 The company has created an activity-based costing system to evaluate the profitability of…

A company produces and sells two products. It sells these products through different channels, and makes them in separate factories. The products have no shared costs. This year there were 42,000 units of each product sold. Contribution margin income statements follow. Sales Variable costs Contribution margin Fixed costs Income Product 1 Complete this question by entering your answers in the tabs below. Product 2 Product 1 $ 735,000 441,000 294,000 110,500 $ 183,500 Numerator For Product 1, compute the contribution margin ratio, the break-even point in dollar sales, and the degree of operating leverage. If sales in dollars increase by 10% for this product, compute income. Numerator Product 2 $ 735,000 73,500 661,500 478,000 $ 183,500 1 Contribution Margin Ratio Denominator Break-Even Point in Dollars Denominator = Contribution margin ratio Break-even point in dollars 0

Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A   B   C Sales $ 330,000     $ 480,000     $ 500,000   Cost of goods sold   (242,000 )     (184,000 )     (190,000 ) Sales commissions   (30,000 )     (44,000 )     (44,000 ) Contribution margin   58,000       252,000       266,000   General fixed operating expenses (allocation of president’s salary)   (92,000 )     (92,000 )     (92,000 ) Advertising expense (specific to individual divisions)   (6,000 )     (20,000 )     0   Net income (loss) $ (40,000 )   $ 140,000     $ 174,000     Required Prepare a schedule of relevant sales and costs for Segment A. 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. Options for required A table are: Advertising…

Jay Company is divided into the South and North Divisions.  Assume the data given in the table below for the South Division.  What is the divisional income from operations for the South Division. S    Sales $1,500,000 C   Cost of good sold 825,000            Selling expenses 425,000     S   Service department allocations 75,000 In  Income from operations ? Group of answer choices $350,000 $175,000 $50,000 none of these

Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Sales Variable expenses Contribution margin Traceable fixed expenses: Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income Sales Traceable fixed expenses: Total Company R 3,675,000 1,745,500 1,929,500 Traceable fixed expenses: R Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Total traceable fixed expenses 634,000 449,000 233,000 1,316,000 Common fixed expenses: Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines.…

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VW Enterprises operates three product lines. The most recent product line (division) income statements are as follows: A Total Sales $ 1,250,000 $ 2,000,000 $ 1,750,000 $ 5,000,000 Variable expenses 1,000,000 1,700,000 1,312,500 4,012,500 Contribution margin (CM) Fixed expenses 250,000 300,000 437,500 987,500 500,000 400,000 120,000 1,020,000 Net income $ (250,000) $ (100,000) $ 317,500 $ (32,500) Sales mix 25.00% 40.00% 35.00% 100.00% CM ratio 20.00% 15.00% 25.00% With Product Lines A & B appearing unprofitable, VW has decided to add Product Line D which has an expected contribution margin ratio of 22.0%. VW management believes the addition of Product Line D will increase TOTAL sales to $6.0 million. The new Product D sales also will impact the sales of Products A, B & C. The revised sales mix shows; A=15%, B=45%, and C=30%, respectively. Product D accounts for the remaining sales. Additionally, the contribution margin ratio for Products A, B & C will remain constant. Of the original…