Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosure Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs Casino $31,000,000 18,000,000 Hotel $24,000,000 12,000,000 The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $6,000,000. The discount coupons redeemed at the hotel totaled $1,000,000. As of the end of the year, all coupons for the current year expired. Required: What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Ente your answers in thousands.) Casino Hotel Operating Profits 4

Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosure Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs Casino $31,000,000 18,000,000 Hotel $24,000,000 12,000,000 The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $6,000,000. The discount coupons redeemed at the hotel totaled $1,000,000. As of the end of the year, all coupons for the current year expired. Required: What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Ente your answers in thousands.) Casino Hotel Operating Profits 4

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1MAD

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Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Casino Hotel Revenues $ 32,000,000 $ 22,000,000 Costs 18,000,000 16,000,000 The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $4,800,000. The discount coupons redeemed at the hotel totaled $2,000,000. As of the end of the year, all coupons for the current year expired. Required: What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Enter your answers in thousands.)
Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs Tours $ 35,200,000 19,800,000 The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $5.3 million. The discount coupons redeemed at the resorts totaled $2.2 million. As of the end of the year, all coupons for the current year expired. Tours Resorts Resorts $ 24,200,000 17,600,000 Required: What are the operating profits for each division considering the effects of the costs arising from the joint agreement? Note: Enter your answers in thousands. Operating Profits
he following information pertains to Sheffield Corp. and its divisions for the year ended December 31, 2021. Sales to unaffiliated customers $3960000 Intersegment sales of products similar to those sold to unaffiliated customers 910000 Interest earned on loans to other operating segments 60000 Sheffield and all of its divisions are engaged solely in manufacturing operations. Sheffield has a reportable segment if that segment's revenue exceeds $487000. $402000. $396000. $493000.
An entity and its divisions reported the following for the year 20xl: Sales to unaffiliated customers 38,000,000 15,000,000 Intersegment sales of products similar to those sold to unaffiliated customers Interest earned on loans to other operating segments 1,600,000 The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable segment, the segment revenue should at least be what amount?
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An entity and its divisions reported the following for the current year: Sales to unaffiliated customers 40,000,000 Intersegment sales of product similar to those sold to unaffiliated customers 12,000,000 Interest earned on loans to other operating segments 1,000,000 The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable segment, the segment revenue should at least be what amount? A. 5,300,000 B. 4,100,000 C. 5,200,000 D. 4,000,000
BEAR BEAR CORP. has the following information on its operating segments. Inter- External Total Segments segment Profit Assets revenues revenues revenues A 2,400,000 1,200,000 3,600,000 1,400,000 24,000,000 800,000 200,000 1,000,000 800,000 14,000,000 500,000 500,000 200,000 2,000,000 D 400,000 400,000 160,000 1,600,000 E 300,000 300,000 140,000 1,400,000 F 200,000 200,000 100,000 1,000,000 Totals 4,600,000 1,400,000 6,000,000 2,800,000 44,000,000 BEAR BEAR shall provide disclosure for major customers if revenues from transactions with a single external customer amount to how much? A. P600,000 C. P440,000 В. P140,000 D. P460,000
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Livro Company has three operating segments with the following information: Books Calendars Bags Sales to outsiders $12000 $9000 $8000 Inter segment transfers 1000 500 1500 In addition, corporate headquarters generates revenues of $2,000.What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable? Choose the correct.a. $2,900b. $3,200c. $3,300d. $3,400
Dancel Company has the following information for its five business segments: Revenue to external Segment Intersegment revenue Segment assets customers A 20,000,000 2,000,000 25,000,000 B 5,000,000 500,000 5,000,000 C. 2,800,000 1,000,000 3,500,000 ID 1,200,000 200,000 1,500,000 E 1,000,000 250,000 1,000,000 How much is the minimum amount of external revenue that should be reported by the reportable segments? A. 22,500,000 B. 27,000.000 C. 49 500,000 D 6.600.00O
Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreement to provide incentives to customers. The Winery division offers coupons good for meals at the restaurants and the Restaurant division offers coupons good for wine tastings and purchases. Annual profits are $21 million. The two divisions meet the requirements for segment disclosures. Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows. Revenue Costs Profit Winery $37,500 Revenues Costs Profit Restaurant $18,750 After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows. Winery Restaurant ? ? ? $13,100 $9,700 ? The value of the coupons issued by the Restaurant Division was double the value of the coupons Issued by the Winery Division. Required: What was the value of the coupons issued by the Winery Division? By the Restaurant Division? (Enter your…
Solomon Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 107,280 Cost of goods sold 58,875 Gross margin 48,405 Operating expenses Selling expenses (2,680 ) Depreciation expense (4,135 ) Operating income 41,590 Nonoperating item Loss on sale of land (4,000 ) Net income $ 37,590 BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Assets Cash $ 12,532 Accounts receivable 40,316 Merchandise inventory 36,900 Equipment less accumulated depreciation 90,288 Nonoperating assets 9,600 Total assets $ 189,636 Liabilities Accounts payable $ 9,447 Notes payable 67,000 Stockholders’ equity Common stock 70,000 Retained earnings 43,189 Total liabilities and stockholder's…