Planes Taxis Service revenue %24 $504,700 $4 Variable costs 5,502,300 296,900 Contribution margin 255,000 485,420 Controllable fixed 1,504,900 costs Controllable margin 76,000 244,320 Average operating 25,002,400 1,527,000 assets Return on investment 12 % 7 %

Sales $ 1,555,000 Variable expenses Contribution margin Fixed expenses 601,000 954,000 1,049,000 Net operating income (loss) $ (95,000) In an effort to resolve the problem, the company would like to prepare an Income statement segmented by division. Accordingly, the Accounting Department has developed the following information: East Division Central $ 620,000 39% Sales $ 355,000 44% West $ 580,000 35% Variable expenses as a percentage of sales Traceable fixed expenses $ 265,000 $ 337,000 $ 200,000 Required: 1. Prepare a contribution format Income statement segmented by divisions. 2-a. The Marketing Department has proposed Increasing the West Division's monthly advertising by $29,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating Income Increase (decrease) If the proposal is Implemented? 2-b. Would you recommend the Increased advertising? Complete this question by entering your…

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%24 Required Informotlon [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $2,300,000 670,000 Sales Variable expenses Contribution margin, Fixed expenses Net operating income Average operating assets $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses, $460,000 50% of sales $161,000 The company's minimum required rate of return is 15%. 2. What is last year's turnover? (Round your enswer to 1 decimal place.) < Prev 2 3 4 15. to search