Required Information[The following information applies to the questions displayed below.]Suresh Company reports the following segment (department) income results for the year.SalesExpensesDepartment M$ 89,000Department N$ 47,000Department o$ 85,000Department P$ 73,000Department T$ 46,000Total$ 340,00048,40024,600Total expensesIncome (loss)73,000$ 9,400$ (26,000)19,1006,20025,300$ 59,70024,00055,800167,10059,70023,800174,10083,70079,600341,200$ (10,700)$ (33,600)$ (1,200)AvoidableUnavoidable19,80059,80079,600b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.Answer is complete but not entirely correct.Total increase in income$ 10,800

To compute the total increase in income by excluding the departments whose sales are less than their…

Answered: Required Information [The following…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 2CE

See similar textbooks

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Assume the following sales data for a company: Line Item Description Amount Current year $883,993 Preceding year 542,076 What is the percentage increase in sales from the preceding year to the current year? a. 63.08% b. 61.32% c. 163.08% d. 38.68%
Need answer the question
Perform a vertical analysis...
Assume the following sales data for a company: Current year $896,005 Preceding year 607,844 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? Oa. 47.4% Ob. 15.3% Oc. 32.2% Od. 79.6%
Assume the following sales data for a company: Line Item Description Amount Current year $891,303 Preceding year 515,759 What is the percentage increase in sales from the preceding year to the current year?
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $820,000 100 % Cost of goods sold 524,800 70 Gross profit $295,200 30 % Selling expenses $180,400 17 % Administrative expenses 65,600 7 Total operating expenses $246,000 24 % Operating income $49,200 6 % Other revenue 16,400 2 $65,600 8 % Other expense 8,200 1 Income before income tax $57,400 7 % Income tax expense 24,600 4 Net income $32,800 3 %
Assume the following sales data for a company: Current year $770,668 Preceding year 635,551 What is the percentage increase in sales from the preceding year to the current year? a.121.26% b.17.53% c.82.47% d.21.26%
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,580,000 100 % Cost of merchandise sold 1,728,600 71 Gross profit $851,400 29 % Selling expenses $490,200 16 % Administrative expenses 206,400 7 Total operating expenses $696,600 23 % Income from operations $154,800 6 % Other revenue and expense: Other revenue 51,600 Other expense (25,800) Income before income tax expense $180,600 7 % Income tax expense 77,400 4 Net income $103,200 3 %
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,320,000 100 % Cost of merchandise sold 1,624,000 73 Gross profit $696,000 27 % Selling expenses $394,400 15 % Administrative expenses 162,400 Total operating expenses $556,800 21 % Income from operations $139,200 6 % Other revenue and expense: Other revenue 46,400 2 Other expense (23,200) Income before income tax expense $162,400 7 % Income tax expense 69,600 Net income $92,800 3 %
Give correct gross margin
Revenue and expense data for Bluestem Company are as follows: Administrative expenses Cost of goods sold Income tax expense Sales Selling expenses Year 2 $37,000 350,000 40,000 800,000 150,000 Year 1 a. Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. Round percents to one decimal point. Bluestem Company Total operating expenses $ $ There was Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 $20,000 320,000 32,000 700,000 110,000 Year 2 Year 2 Amount Percent 11% % Year 1 Year 1 Amount Percent %%$ % $ %$ % % % % % % % b. Comment upon significant changes disclosed by the comparative income statement. in the cost of goods sold, and in cost of goods sold and contributed greatly to the in administrative expenses. However, the more significant in net income. in selling expenses offset the

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS