Segment reporting #1 Acme Company has two segments within their organization - Segment A and Segment B Revenue and cost info relating to the segments is below: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Last year the company produced and sold: Segment A Segment B 10.50 5.50 3.50 3.75 30,000 18,000 25,000 30,000 It's annual common fixed expenses are: 75,000 a Prepare a segmented CM IS. b Compute the company wide break even point in dollar sales. c Compute the break even point in dollar sales for Segment A. d Compute the break even point in dollar sales for Segment B.

Segment reporting #1 Acme Company has two segments within their organization - Segment A and Segment B Revenue and cost info relating to the segments is below: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Last year the company produced and sold: Segment A Segment B 10.50 5.50 3.50 3.75 30,000 18,000 25,000 30,000 It's annual common fixed expenses are: 75,000 a Prepare a segmented CM IS. b Compute the company wide break even point in dollar sales. c Compute the break even point in dollar sales for Segment A. d Compute the break even point in dollar sales for Segment B.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

Segment Reporting The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Summarized data for Walrus Co. for its first year of operations are: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 3,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (B) and (C).
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Blue Incorporated manufactures a product with the following cost structure: Price per unit Selling price R12 Production costs: Material R2 Labour R2 Variable overheads R1 Fixed overheads R5 000 Over a three-year period the production and sales of the product are as follows: Y1 Y2 Y3 Production 2 000 1 000 2 000 Sales 1 000 2 000 2 000 Required: 1.1 You are required to produce the Statement of Financial Performance over the three-year period under the absorption costing. 1.2 Evaluate the application of the absorption costing method in profit reporting.
Question 1: Pamlico Manufacturing Ltd has the following information given in the table below. 12.50 Sales per unit Variable production cost per unit Variable administration sales and distribution per 7.50 1.00 unit Fixed production costs 37 500 18 750 Fixed administration sales and distribution Opening inventory in units Units produced 2 500 25 000 At the beginning of December 2018, there were 2 500 units in inventory. Required: Draw up a staement of comprehensiy income according to margial costing principlesor three differenevels of sales, for the moth of December 12 500 units b) 18 750 units c) 25 000 units Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
Following information relating to a type of raw material is available: Annual demand 2,400 units, Unit price OMR. 2.400, Ordering cost per order OMR.4.000, Storage cost 2% per annum, Interest rate 10% per annum. Calculate Economic Order Quantity. a. 258 units • b. None c. 852 units d. 528 units
Prepare the Income Statement of Rotary Limited for the year ended 28 February 2021 using the following methods of costing: 2.1 Marginal costing | 22 Absorption costing INFORMATION The following information was extracted from the accounting records of Rotary Limited for the year ended 28 February 2021: Inventory on 01 March 2020 Nil Production for the year 35 000 units Sales for the year 30 000 units Fixed costs: Manufacturing R700 000 Sales and administration R480 000 Variable costs per unit: Manufacturing R48 Sales and administration R12 Selling price per unit R150
vj subject-Accounting Hanks recently produced & sold 2777 units. Fixed costs per unit at this level of activity amounted to $8; variable costs per unit were $9. How much total cost would the company anticipate if during the next period it produced & sold 6919 units? Note: assume this level is still within the relevant range Round your final answer to 2 decimal places
Trend Reporting for Non-Value-Added Costs Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 12,000 24,000 $21 Assembly Labor hours 99,000 120,000 15 Expediting Orders expedited 0 8,000 50 Storing Number of units 0 16,000 7 Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting…