Georgetown Corporation has two major business segments-Hats and Scarfs. Dataconcerning those segments for October appear below:Sales revenues, Hats$130,000Variable expenses, Hats$66,000Traceable fixed expenses, Hats$17,000Sales revenues, Scarfs$540,000Variable expenses, Scarfs$270,000Traceable fixed expenses, Scarfs $92,000Common fixed expenses totaled $153,000.Required:Prepare a segmented income statement in the contribution format for the company.Omit percentages; show only dollar amounts.the break-even point in sales for the company as a whole.No Heading Required. Also calculate

The main purpose of the income statement is to show how much profit or loss an organization…

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. the break-even point in sales for the company as a whole. No Heading Required. Also calculate

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. the break-even point in sales for the company as a whole. No Heading Required. Also calculate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Data for January for Bondi Corporation and its two major business segments, North and South, appear below. Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South $ 620,000 $ 359,700 $ 74,100 $ 478,400 $ 273,000 $ 61,900 In addition, common fixed expenses totaled $167,800 and were allocated as follows: $87,100 to the North business segment and $80,700 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
Data for January for Bondi Corporation and its two major business segments, North and South, appear below. Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South $ 660,000 $ 383,000 $ 79,000 $ 510,000 $291,000 $ 66,000 In addition, common fixed expenses totaled $179,000 and were allocated as follows: $93,000 to the North business segment and $86,000 to the South business segment. The contribution margin of the South business segment is
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,570 Sales 188,000 Research and development (uncontrollable) 315 Depreciation expense 18,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,250 Total expenses Marketing costs (uncontrollable) 780 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 320 A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended December 31, 20xx Controllable Expenses: Total Controllable…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,030 Labor expense 41,570 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 310 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin fill in the blank…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 189,000 Research and development (uncontrollable) 310 Depreciation expense 16,000 Net income/(loss) ? Cost of goods sold 119,070 Selling expense 1,250 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 330 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Sales $fill in the blank cde9000a3faf056_2 Cost of…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 320 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,260 Total expenses Marketing costs (uncontrollable) 790 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 330 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Total Expenses B. Calculate the profit margin, return on investment, and residual income. Assume an…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 315 Depreciation expense 16,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 780 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 310 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin ? % Return on investment ? %…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income? Gross profit? Allocated costs (uncontrollable) $2,035 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,240 Total expenses ? Marketing costs (uncontrollable) 800 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 310
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,030 Labor expense 41,570 Sales 190,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,240 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 680 Income tax expense (21% of pretax income) ? Other expenses 320 Question Content Area A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS EnterprisesIncome StatementFor the Year Ended Dec. 31, 20xx $Sales Cost of Goods Sold…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 190,000 Research and development (uncontrollable) 310 Depreciation expense 18,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 780 Administrative expense 680 Income tax expense (21% of pretax income) ? Other expenses 320 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. B.Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital.…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 190,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 330 A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended December…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,035 Labor expense 41,590 Sales 189,000 Research and development (uncontrollable) 315 Depreciation expense 16,000 Net income/(loss) ? Cost of goods sold 119,070 Selling expense 1,250 Total expenses ? Marketing costs (uncontrollable) 780 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 330 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Sales $fill in the blank c8599b09205f02e_2 Cost of…