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Alenkinab [10]
2 years ago
13

2. Lereve Company has recorded the following information about the results of its operations for the fourth quarter: Sales reven

ues Variable cost of sales Fixed costs: Common Traceable Total Company $200,000 $ 60,000 $100,000 $ 50,000 Western Division $ 80,000 30,000 25,000 20,000 Eastern Division $120,000 30,000 75,000 30,000 Based on this information, prepare a segmented income statement for the quarter and comment on the results.
Business
1 answer:
Pepsi [2]2 years ago
3 0

Answer:

Lereve Company

Segmented Income Statement for the fourth quarter:

                                   Total Company  Western Division  Eastern Division  

Sales revenues           $200,000              $80,000              $120,000

Variable cost of sales     60,000                 30,000                  30,000

Contribution                $140,000               $50,000               $90,000

Fixed costs:

Common                     $100,000               $25,000               $75,000

Traceable                       50,000                  20,000                 30,000    

Net Income (Loss)       ($10,000)                 $5,000              ($15,000)

The results show that the Eastern Division made a net loss of $15,000 and the Western Division raked in a net income of $5,000, which resulted in the company-wide net loss of $10,000.  This loss could be traced to the allocated common fixed costs of the division, because its contribution to fixed costs was substantial and better than the Western Division's.

Explanation:

When the results of the operations of a divisional company like Lereve Company are prepared in segmental form, the performance pictures become clearer.  Management is enabled to focus on the segments or the factors that are generating the loss to the company.  Perhaps, as in this case, the problem may not be with the division, but the allocation of fixed costs to the divisions.  It can still be traced to the company as a whole, since it is generating much more fixed costs than it could afford from its revenue.

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Standard mortgage (360 months) with monthly payments and a nominal rate of 5.70%. The portion of the payments during the first 30 months goes toward interest is 80.53%

Interest portion means the quantities of each of the payments within the column inside the agenda attached to the acquisition agreement special “interest,” denominated as and comprising hobby pursuant to the purchase settlement and obtained with the aid of any owner.

To find the portion of the payments during the first 30 months that goes toward interest follow the following steps:

Let's assume the mortgage amount is 10,00,000

Computation of monthly installment

FV   0

PV   -1,00,000

I       5.70% / 12 = 0.4750%

N     360

Computation of loan value at 30th payment

PV      -1,00,000

PMT    $580.40

I           0.4750%

N          30

Compute FV  = $96,610.23

Total interest ( 580.40 * 30 - (1,00,000) ) = $14,022.24

Total payment ( 580.40 * 30 ) = $17,412.01

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Learn more about mortgages here brainly.com/question/1318711

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