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sesenic [268]
3 years ago
13

Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The follo

wing information was provided for the coming year. Poinsettias Fruit Trees Sales $970,000 $3,100,000 Variable cost of goods sold 460,000 1,630,000 Direct fixed overhead 160,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable.
Business
1 answer:
scoray [572]3 years ago
5 0

Answer

A= Net operating loss = (924800)

B= Net operating profit = $9000

Explanation:                                                        A                               B  

                                                                    (Poinsettia)                 (Fruit tree)              

                                                                                   $                               $

Sales                                                                  =970000     ;           = 3100000

less: Variable cost of goods sold                    = (<u>460000</u>)  ;          =(<u>1630000</u>)

Gross contribution margin                                 510000     ;              1470000

Less: <u>Selling expense (4% o sales)</u>

    A (970000*4%)

   B(310000 *4%)                                               ( <u>38800</u>)      ;            ( <u>124000</u>)

 Contribution margin                                         471200     ;             1346000

Less: Fixed overheads                                    <u> (800000</u>)    ;           <u> (800000)</u>

                                                                         (328800)     ;            546000

less: Fixed Selling & admin expense             <u>(146000)</u>      ;           <u>  (87000)  </u>  

                                                                         (474800)     ;           (459000)

Less: Common selling and admin expense (<u>450000) </u>    ;            (<u>450000)</u>

Net operating income /( loss)                        (924800)     ;             9000                                                      

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Lagle Corporation has provided the following information:
mezya [45]

Answer:

b.$20,550

Explanation:

The period costs are those costs which include costs  for a particular period. The calculation for these costs differ under the two methods  absorption and variable. Under absorption Costing the Period costs include Variable selling and administrative + Fixed selling and administrative expenses.

<u>Lagle Corporation</u>

<u>Absorption Costing</u>

Direct materials $ 4.75 * 7000= $ 33250

Direct labor $ 3.70  * 7000= $ 25900

Variable manufacturing overhead $ 1.45  * 7000= $ 10150

Fixed manufacturing overhead $ 18,200

Total Product costs $ 87,500

Sales commissions $ 1.70  * 7000=$ 11900

Variable administrative expense $ 0.55  * 7000= $ 3850

Fixed selling and administrative expense $ 4,800

Total Period Costs $ 20550

<u><em>Mostly Absorption costing is used for daily basis. Therefore Choice b is the best option</em></u><em>. </em>

Under variable costing the Period costs include Fixed manufacturing overheads + Fixed selling and administrative expenses.

<u>Lagle Corporation</u>

<em>Variable Costing</em>

Direct materials $ 4.75 * 7000= $ 33250

Direct labor $ 3.70  * 7000= $ 25900

Variable manufacturing overhead $ 1.45  * 7000= $ 10150

Sales commissions $ 1.70  * 7000=$ 11900

Variable administrative expense $ 0.55  * 7000= $ 3850

<em>Total Product costs $ 85,050</em>

Fixed selling and administrative expense $ 4,800

Fixed manufacturing overhead $ 18,200

<em>Total Period Costs $ 23000</em>

7 0
3 years ago
Think of three example from your own experience, and explain how they demonstrate the concept of diminishing marginal utility.
rewona [7]
Examples:
1.) Having a stain on your rug there's only so much you can get out before your damaging your rug with cleaner

2.) Babysitting and having the child miss there mom, there's only so much you can do to try to calm him/her down 

3.) Watering plants, if you haven't watered plant in a long time so you give them extra water, if you keep giving the plant extra water it will eventually drown and die.

6 0
3 years ago
Dwjhbc,skugwhdcjgszhncdx ajhgcshanvcjut57725352371888886523e7yvhagayvx7565
Elden [556K]

Answer:the answer is... Wdsdftghyfeefvefvdcdfdf+A+&y43

Explanation:you are an "A" to the first letter and that's "D" there ya go

8 0
3 years ago
You have 25 years left until retirement and want to retire with $1.1 million. Your salary is paid annually, and you will receive
Reptile [31]

Answer:

percentage of your salary save each year is 13.24%

Explanation:

given data

time period t = 25 year

amount = $1.1 million

salary = $61000

increase r1 = 4 percent per year = 0.04

return r2 = 10 percent = 0.1

to find out

what percentage of your salary must you save each year

solution

we consider here annual saving = A

so amount formula is

amount = A × \frac{(1+r1)^t -(1+r2)^t}{r1-r2}

here A is annual saving and r1 is increase rate and r2 is return rate

1100000 = A × \frac{1.1^{25} - 1.04^{25}}{0.1-0.04}

A = $8079.45

so

proportion of salary is \frac{8079.45}{61000}

proportion of salary = 13.24%

so percentage of your salary save each year is 13.24%

7 0
3 years ago
. In the context of sourcing, multiple suppliers: a. often provide the ability to form close partnerships. b. often provide econ
Galina-37 [17]

Answer:

c. lower the risk of supply disruption

Explanation:

Having multiple suppliers is always a good sourcing strategy, as it <u>minimizes the risk of supply disruption</u>. If one of the suppliers fails to maintain the contract due to various reasons (bad business operating), the risk is dispersed among a few suppliers, so there is the contingency principle applied.

This way, the supply chain never gets disrupted.

6 0
3 years ago
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