Can you please check my work Avoidable9,80051,80061,60036,40012,60049,00022,4004,20026,60014,00029,40043,400Unavoidable37,8009,80047,600$(19,600)120,400107,800228,200Total expensesNet income (loss)$ 1,400$(14,000)$29,400$(1,400)$ (4,200)Recompute and prepare the departmental income statements (including a combined total column) for the company undereach of the following separate scenarios.(1) Management eliminates departments with expected net losses.DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATEDDept. MDept. NDept. ODept. PDept. TTotalSales2$63,000 $O $56,000$42,000 $0 $161,000Expenses:Avoidable9,80022,40014,00046,200Unavoidable51,80012,6004,20029,4009,800:107,800Total expenses61,60012,60026,60043,4009,800154,000Net income (loss)1,400 $ (12,600) $29,400 $(1,400) $(9,800) $7,000%24 Suresh Co. expects its five departments to yield the following income for next year.Dept. M$63,000Dept. NDept. 0$56,000Dept. P$42,000Dept. T$ 28,000TotalSales$ 35,000$224,000ExpensesAvoidable9,80051,80061,600$ 1,40036,40022,4004,20026,60014,00037,800120,400107,800228,200Unavoidable12,60049,00029,40043,4009,80047,600Total expensesNet income (loss)$(14,000)$29,400$(1,400)$ (19,600)$(4,200)Recompute and prepare the departmental income statements (including a combined total column) for the company undeeach of the following separate scenarios.(1) Management eliminates departments with expected net losses.DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATEDDept. MDept. NDept. ODept. PDept. TTotalSales63,000 $O $56,000 $42,000$40 $161,000Expenses:Avoidahlea 80022 40011 000A6 200< Prev78of 11Next >%24

Suresh Co. expects its five departments to yield the following income for next year. Dept. M $63,000 Dept. N $ 35,000 Dept. 0 $56,000 Dept. P $42,000 Dept. T $ 28,000 Total Sales $224,000 Expenses Avoidable 9,800 51,800 61,600 36,400 12,600 49,000 22,400 4,200 26,600 14,000 29,400 43,400 37,800 9,800 47,600 120,400 107,800 228,200 Unavoidable Total expenses Net income (loss) $1,400 $(14,000) $29,400 $(1,400) $(19,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company une each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales $ 63,000 2$ 2$ 56,000 $ 42,000 $ 2$ 161,000 Expenses: O eon 22 400 Aunidable 14 000 A6 200

Suresh Co. expects its five departments to yield the following income for next year. Dept. M $63,000 Dept. N $ 35,000 Dept. 0 $56,000 Dept. P $42,000 Dept. T $ 28,000 Total Sales $224,000 Expenses Avoidable 9,800 51,800 61,600 36,400 12,600 49,000 22,400 4,200 26,600 14,000 29,400 43,400 37,800 9,800 47,600 120,400 107,800 228,200 Unavoidable Total expenses Net income (loss) $1,400 $(14,000) $29,400 $(1,400) $(19,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company une each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales $ 63,000 2$ 2$ 56,000 $ 42,000 $ 2$ 161,000 Expenses: O eon 22 400 Aunidable 14 000 A6 200

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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[The following information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next year. Dept. 0 $70,000 Dept. M Dept. N Dept. P Dept. T Total $77,000 $ 39,000 $56,000 $ 38,000 $ 280,000 Sales Expenses 14,800 55,800 70,600 42,400 18,600 19,000 43, 200 46,800 16,800 Avoidable 21,600 5, 200 26,800 $43, 200 144,600 139,600 Unavoidable Total expenses 61,000 $(22,000) 62,200 63,600 284, 200 Net income (loss) $ 6,400 $(6, 200) $(25,600) $ (4, 200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPEC TED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom
Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
Mitsu Division has the following results for the year: Revenues $1,080,000Variable expenses 440,000Fixed expenses 400,000Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. What is the residual income for Scottso?
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 1 Department 2 Department 3 Sales $837,500 $402,500 $1,070,000 Variable Costs 556,250 358,750 752,500 Contribution Margin $281,250 $43,750 $317,500 Direct fixed expenses $150,000 $33,750 $203,750 Common fixed expenses 93,750 37,500 117,500 Total fixed expenses $243,750 $71,250 $321,250 Operating income (loss) $37,500 $(27,500) $(3,750) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated. What effect would elimination of Department 3 have on DJH’s total operating income? Select one: a. It would decrease total operating income by $113,750. b. It would decrease total operating income by $317,500. c. None of these options are correct. d. It would increase total operating income by $117,500. e. It would decrease total operating income by $3,750.
The Emergency Medical Services Company has two divisions that operate independently of one another. The financial data for the year 20x5 reported the following results North South $4,440,000 $3,940,000 1,110,000 910,000 920,000 645,000 6,000,000 5,000,000 Sales Operating income Taxable income Investment The company's desired rate of return is 10%. Income is defined as operating income. a. What are the respective return-on-investment ratios for the North and South divisions? Round ROI to the nearest whole percentage. ROI North South b. What are the respective residual incomes of the North and South divisions? Residual income North S South S c. Which division has the better return on investment and which division has the better residual income figure? Return on investment i # Residual income
DJH Enterprises has 3 departments. Operating results for 2019 are as follows: Department 1 Department 2 Department 3 Sales $938,000 $450,800 $1,198,400 Variable Costs 623,000 401,800 842,800 Contribution Margin $315,000 $49,000 $355,600 Direct fixed expenses $168,000 $37,800 $228,200 Common fixed expenses 105,000 42,000 131,600 Total fixed expenses $273,000 $79,800 $359,800 Operating income (loss) $42,000 $(30,800) $(4,200) DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated.What effect would elimination of Department 2 have on DJH’s total operating income? Select one: a. It would increase total operating income by $42,000. b. It would decrease total operating income by $7,000. c. It would decrease total operating income by $49,000. d. It would increase total operating income by $30,800. e. It would decrease total operating income by $11,200.
Durand Division has the following results for the year: Revenues $470,000Net income 130,000Total divisional assets are $625,000. The company's minimum required rate of return is 12 percent. Residual income for Durand is?
The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Cardoba Inc. are as follows: Dept. ADept. BTotalSales$420,000$290,000$710,000Gross profit243,000197,000440,000Direct operating expenses205,000118,000323,000Indirect operating expenses160,000Required:Compute the departmental direct operating margin and direct operating margin percentage for each department.
The Emergency Medical Services Company has two divisions that operate independently of one another. The financial data for the year 20X5 reported the following results: North South Sales $3,720,000 $3,220,000 Operating income 930,000 730,000 Taxable income 785,000 510,000 Investment 6,000,000 5,000,000 The company's desired rate of return is 10%. Income is defined as operating income. a. What are the respective return-on-investment ratios for the North and South divisions? Round ROI to the nearest whole percentage. North: Answer South: Answer b. What are the respective residual incomes of the North and South divisions? North: Answer South: Answer c. Which division has the better return on investment and which division has the better residual income figure? Return on investment: Answer Residual Income: Answer
Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 Department P $ 82,000 $ 44,000 $ 78,000 $ 65,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T 17,300 45,400 57,800 21,600 75, 100 67,000 $ 6,900 $ (23,000) Decision 18,000 5,700 23,700 $ 54,300 21,500 54,300 75,800 $ (10,800) Department T $ 43,000 51,300 20,300 71, 600 $ (28,600) Total $ 312,000 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? 153,500 159, 700 313, 200 $ (1,200)
The information provided below was taken from the records of Chotoo Projects for the financial year ended 31 May 2020. Extract of statement of comprehensive income for the year ended 31 May 2020 R Revenue 480 000 Direct costs 240 000 Rent income 150 000 Advertising 4 800 Salaries and wages 90 000 Rates and taxes 1 200 Other operating expenses 80 000 21 Additional information 1. Revenue is calculated as direct cost plus 25%. 2. Revenue is divided equally each month. Revenue is expected to increase by 18% for the financial year ending 31 May 2021. 3. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtors normally pay their accounts as follows:  40% in the month of the invoice, and these debtors are entitled to a 5% discount;  55% one month after the invoice; The balance is usually written off as bad debts. 4. Purchases for June and July are expected to be 30 000 per month. All purchases are for cash. 5. In terms of the lease agreement rent is received…