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
kodGreya [7K]
3 years ago
9

Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasin

g. The corporate expenses for the year ended December 31, 20Y7, are as follows:
Tech Support Department $516,000
Purchasing Department 89,600
Other corporate administrative expenses 560,000
Total corporate expense $1,165,600

The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:

Tech Support Purchasing
Consumer Division 375 computers 1,960 purchase prder
Commercial Division 225 3640
Total 600 computers 5,600 purchase order

The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:

Consumer Commercial
Revenues $7,430,000 $6,184,000
Cost of goods sold 4,123,000 3,125,000
Operating expenses 1,465,000 1,546,000

Required:
Prepare the divisional income statements for the two divisions.
Business
1 answer:
kipiarov [429]3 years ago
3 0

Answer:

Yozamba Technology

Divisional Income Statements:

                                  Consumer       Commercial        Total

Revenues                 $7,430,000        $6,184,000    $13,614,000

Cost of goods sold     4,123,000          3,125,000       7,248,000

Gross profit              $3,307,000      $3,059,000    $6,366,000

Operating expenses  1,465,000          1,546,000        3,011,000

Corporate expenses:

Tech Support               322,500             193,500          516,000

Purchasing                      31,360               58,240           89,600

Other corporate administrative expenses                  560,000

Total expenses       $1,818,860          $1,797,740     $4,176,600

Net income (loss)    $1,488,140         $1,261,260     $2,189,400

Explanation:

a) Data and Calculations:

Corporate expenses for the year ended December 31, 20Y7:

Tech Support Department                         $516,000  Number of computers

Purchasing Department                                 89,600  Number of POs

Other corporate administrative expenses 560,000

Total corporate expense                         $1,165,600

Usage of Service:

                                 Tech Support          Purchasing

Consumer Division    375 computers     1,960 purchase order

Commercial Division 225                       3,640

Total                           600 computers    5,600 purchase order

Overhead Rates:

Tech Support = $860 per computer ($516,000/600)

Purchase = $16 per purchase order ($89,600/5,600)

Allocation of Corporate Expenses:

                                     Tech Support     Purchasing     Total

Consumer Division           $322,500        $31,360        353,860

                                       (375 * $860)     (1,960 * $16)

Commercial Division            193,500        58,240          251,740

                                      (225 * $860)     (3,640 * $16)

Total                                   $516,000      $89,600      $605,600

You might be interested in
Orel's credit card has an APR of 12.15% and a grace period of 16 days, and Orel pays his balance in full every month. If his las
Aneli [31]
. yes, because he didnt pay within the grace period 
3 0
3 years ago
Read 2 more answers
Assume a project has normal cash flows. according to the accept/reject rules, the project should be accepted if the?
True [87]

Assume a project has normal cash flows. According to the accept/reject rules, the project should be accepted if the: IRR exceeds the required return.

Internal rate of return (IRR) is a metric used in financial analysis to estimate the potential profitability of an investment. The IRR is the discount rate that drives the net present value (NPV) of all cash flows to zero in discounted cash flow analysts. This suggests that an expected angel investment IRR of at least 22% is considered a good IRR. The higher

the project's projected IRR and the higher the amount above its cost of capital, the more net cash the project brings to the firm. So in this case the project appears to be profitable and management should go ahead with it.

Learn more about IRR  here

brainly.com/question/15933534

#SPJ4

6 0
2 years ago
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold ev
zmey [24]

Answer:

The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

Explanation:

The amount of the tax on a bottle of wine is $5 ($3 + $2).

The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers.  This implies that the burden passed to consumers is $3 out of the total tax burden of $5.

The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers.  This means that the burden passed to producers is $2 out of the total tax burden of $5.

If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5).  This would have reduced demand for wine as consumers would have been forced to bear the total burden.  This would have made the tax unequitable.  This would have been the case unless demand is inelastic.  That means that the total demanded is not sensitive to price increases.

3 0
3 years ago
he graph shows excess supply. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posit
yan [13]

Answer:

it needs to be decreased

Explanation:

6 0
3 years ago
Read 2 more answers
Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports
Rudiy27

Answer:

37.00%

Explanation:

The computation of the weighted average contribution margin ratio is shown below:

Particulars                    Sporting Goods Sports Gear Total

Contribution Margin Ratio 30%                    50%  

Sales Mix - Weights         65%                     35%  

Weighted Contribution Margin 19.50% 17.50% 37.00%

We simply multiplied the contribution margin ratio with the sales mix weighted so that the weighted contribution margin ratio could come

7 0
3 years ago
Other questions:
  • 4. If a good is considered "normal" by economists, an increase in consumers' incomes will result in a decrease in the
    6·1 answer
  • Employees who handle and prepare food should:
    9·1 answer
  • What is the hypothetical economic and political system in which all people in society are socially equal?
    10·1 answer
  • Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. a. minimum
    10·1 answer
  • In order to deal with the financial problems inherent to the current Social Security system, President Waldhart proposes that an
    13·1 answer
  • The example approval form in the activity shows that
    13·2 answers
  • West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds
    6·1 answer
  • If a bank has $500 million of checkable deposits, a required reserve ratio of 15%, and it holds $126 million reserves, then the
    7·1 answer
  • Need a contact no need to cancel
    9·1 answer
  • The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!