1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anon25 [30]
3 years ago
9

Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution marg

in ratio, and net operating income are $1,050,000, 40%, and $21,000, respectively. The North Division’s contribution margin and contribution margin ratio are $154,000 and 44%, respectively. The South Division’s segment margin is $175,000. The company has $262,500 of common fixed expenses that cannot be traced to either division.Required:Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales
Business
1 answer:
a_sh-v [17]3 years ago
4 0

Answer:

<u>North Division:</u>

Sales 154,000 12.8%

Variables Cost 101,640 8.44%

Contribution Margin 52,360 4.39%

<u>South Division:</u>

Sales 1,050,000 87.20%

Variables Cost 630,000 52.33%

Contribution Margin 420,000 34.84%

Total Contribution 472,360 39.23%

Fixed Cost 262,500 21.18%

Net Income 209,860 17.43%

Explanation:

First we do the income statements

then we add both sales figures together:

154,000 + 1,050,000 = 1,204,000

And add the percentajeof sales for each line

You might be interested in
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s t
posledela

Answer:

Based on the DuPont equation and given information, ROE of Harrington Inc is 13.818%.

Explanation:

We have to find the total equity and total debt of Harrington Inc in order to apply the DuPont equation for finding ROE because net income, sales of Harrington Inc. are already given.

- To find Harrington Inc's total debt, apply the Debt-to-capital formula: The Harrington Inc's total debt/The Harrington Inc's total capital = 45% =>  Harrington Inc's total debt = The Harrington Inc's total capital * 45% = $250,000 x 45% = $112,500;

- To find Harrington Inc's total equity, apply the accounting equation Asset = Liabilities + Owner's Equity: The Harrington Inc's total equity = The Harrington Inc's total asset - The Harrington Inc's total debt = $250,000 - $112,500 = $137,500;

- Using the Dupont equation, calculate the ROE as followed:

(NI/Sales)* (Sales/ Total assets) * (Total assets/ Total common equity) = (19,000/325,000) * ( 325,000/ 250,000) * (250,000/137,500) = 13.818%.

- Thus, the ROE = 13.818%.

5 0
3 years ago
Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases
gtnhenbr [62]

Answer:

She can deduct the full $120,000. the answer is $120,000.

Explanation:

Therefore, M is following cash basis of accounting , She can deduct the full $120,000 amount. Under cash system, expenses are recorded when cash is paid irrespective of whether it is accrued or not.

5 0
3 years ago
The Organisation for Economic Co-operation and Development's requirement that personal data collected should be accurate, comple
yaroslaw [1]

Answer:

Data Quality Principle

Explanation:

Collected data is said to be relevant if it is a true representation of real world facts. If it is not then conclusions drawn from it will be incorrect.

Data should be complete, consistent, have integrity, and relevant for a specific use.

For example in marketing, a company uses names and contact information to promote their goods and services. The data needs to be correct and updated for it to be useful. Assume a customer has changed his address and phone number, and these were not updated. It will be difficult for the company to conduct business with him.

4 0
2 years ago
You run a hospital with 100 rooms. Fixed daily cost is $880.00 which includes staff salary, property charges, maintenance etc. V
andrew-mc [135]

Answer:

$924

Explanation:

The computation of the profit/loss is shown below:

= Sale - variable cost - fixed daily cost

where,

Sale = Selling price per room × Number of rooms sold

= $55 × 41 rooms

= $2,255

And, the variable cost would be

= Variable cost per room × Number of rooms sold

= $11 × 41 rooms

= $451

And, the fixed daily cost is $880

Now put these values to the above formula

So, the value would be equal to

= $2,255 - $451 - $880

= $924

7 0
3 years ago
When Steven askes questions in an open-minded way, he avoids:
Elenna [48]
Attacking someone else's opinion. I hope this helps!
3 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose Jones Company manufactures chairs. One model is the executive chair that sells for $120. Jones Company projects sales of
    10·1 answer
  • Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.50. It expects to grow at a constant rate of 2
    8·1 answer
  • By definition, _____________ is the activity, set of institutions, and processes for creating, communicating, delivering and exc
    8·1 answer
  • A call provision gives bondholders the right to demand, or "call for," repayment of a bond. Typically, companies call bonds if i
    6·1 answer
  • Which of these pieces of information would fit in a career plan's career requirements section? Check all that apply.
    10·2 answers
  • The advantages of litigation are that it is private, quicker and less costly than alternative dispute resolution. True False
    7·1 answer
  • During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On
    8·1 answer
  • Executive headhunters have approached Charles about taking the position of senior vice president of marketing for a well-known c
    15·1 answer
  • In which year did gross national product first exceed $11 trillion?
    15·1 answer
  • Joe, a plumber, borrowed money from a friend who is now insisting that Joe repay the money. Joe does not have the money but has
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!