16. Northern Apparel Company owns two stores and management is considering elimi
ID: 2455593 • Letter: 1
Question
16.
Northern Apparel Company owns two stores and management is considering eliminating the South store due to declining sales. Segmented contribution income statements are as follows and common fixed costs are allocated on the basis of sales.
North
South
Total
Sales
$475,000
120,000
$595,000
Variable costs
242,500
69,000
311,500
Direct fixed costs
72,500
35,500
108,000
Segment margin
160,000
15,500
175,500
Allocated fixed costs
104,500
48,000
152,500
Net Income
$55,500
($32,500)
$23,000
Northern feels that if they eliminate the South store, sales in the North store will decline by 20%. If they close the South store, overall company net income will:
A)
decline by $90,000.
B)
decline by $85,625.
C)
decline by $62,000.
D)
decline by $20,000.
Information for Questions 18
Anderson Manufacturing makes a single product. Budget information regarding the current period is given below:
Revenue (100,000 units at $8.00)
$800,000
Direct materials
150,000
Direct labor
125,000
Variable manufacturing overhead
235,000
Fixed manufacturing overhead
110,000
Net income
$180,000
Dye Company approaches Anderson with a special order for 15,000 units at a price of $7.50 per unit. Variable costs will be the same as the current production and accepting the special order will not have any impact on the rest of the company's orders. However, Anderson is operating at capacity and will incur an additional $50,000 in fixed manufacturing overhead if the order is accepted.
18.
What is the incremental income (loss) associated with accepting the special order?
A)
($14,000)
B)
$36,000
C)
($23,500)
D)
$27,000
Use the following to answer question 23:
Taylor's Treasures has collected the following information over the last six months.
Month
Units produced
Total costs
March
10,000
$25,600
April
12,000
26,200
May
18,000
27,600
June
13,000
26,450
July
12,000
26,000
August
15,000
26,500
23.
Using the high-low method, what is the variable cost per unit?
A)
$0.25
B)
$2.56
C)
$0.22
D)
$2.00
24.
During 2014, Teko Inc. reported revenues of $925,400 and profits of $88,500. Fixed costs were $456,250 and 37,016 units were sold. If costs and prices are expected to stay the same in 2015, and Teko expects to sell 40,000 units, what will be the company’s budgeted profit?
A)
$95,457
B)
$132,414
C)
$525,000
D)
$667,957
25.
Visit finance.yahoo.com and determine which of the following statements is incorrect:
A)
The current market cap of Google is greater than the market cap of Microsoft.
B)
The current ratio for the most recent quarter for Microsoft is greater than the current ratio for Google.
C)
The current price per share of Google is more than ten times that of Microsoft.
D)
Return on equity for the most recent quarter for Microsoft is higher than return on equity for Google.
16.
Northern Apparel Company owns two stores and management is considering eliminating the South store due to declining sales. Segmented contribution income statements are as follows and common fixed costs are allocated on the basis of sales.
North
South
Total
Sales
$475,000
120,000
$595,000
Variable costs
242,500
69,000
311,500
Direct fixed costs
72,500
35,500
108,000
Segment margin
160,000
15,500
175,500
Allocated fixed costs
104,500
48,000
152,500
Net Income
$55,500
($32,500)
$23,000
Northern feels that if they eliminate the South store, sales in the North store will decline by 20%. If they close the South store, overall company net income will:
A)
decline by $90,000.
B)
decline by $85,625.
C)
decline by $62,000.
D)
decline by $20,000.
Information for Questions 18
Anderson Manufacturing makes a single product. Budget information regarding the current period is given below:
Revenue (100,000 units at $8.00)
$800,000
Direct materials
150,000
Direct labor
125,000
Variable manufacturing overhead
235,000
Fixed manufacturing overhead
110,000
Net income
$180,000
Dye Company approaches Anderson with a special order for 15,000 units at a price of $7.50 per unit. Variable costs will be the same as the current production and accepting the special order will not have any impact on the rest of the company's orders. However, Anderson is operating at capacity and will incur an additional $50,000 in fixed manufacturing overhead if the order is accepted.
18.
What is the incremental income (loss) associated with accepting the special order?
A)
($14,000)
B)
$36,000
C)
($23,500)
D)
$27,000
Use the following to answer question 23:
Taylor's Treasures has collected the following information over the last six months.
Month
Units produced
Total costs
March
10,000
$25,600
April
12,000
26,200
May
18,000
27,600
June
13,000
26,450
July
12,000
26,000
August
15,000
26,500
23.
Using the high-low method, what is the variable cost per unit?
A)
$0.25
B)
$2.56
C)
$0.22
D)
$2.00
24.
During 2014, Teko Inc. reported revenues of $925,400 and profits of $88,500. Fixed costs were $456,250 and 37,016 units were sold. If costs and prices are expected to stay the same in 2015, and Teko expects to sell 40,000 units, what will be the company’s budgeted profit?
A)
$95,457
B)
$132,414
C)
$525,000
D)
$667,957
25.
Visit finance.yahoo.com and determine which of the following statements is incorrect:
A)
The current market cap of Google is greater than the market cap of Microsoft.
B)
The current ratio for the most recent quarter for Microsoft is greater than the current ratio for Google.
C)
The current price per share of Google is more than ten times that of Microsoft.
D)
Return on equity for the most recent quarter for Microsoft is higher than return on equity for Google.
Explanation / Answer
As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Q16 C) decline by $62,000 Statement showing computations Particulars North Division Sales 380,000.00 Variable costs 194,000.00 Direct Fixed Costs 72,500.00 Segment Margin 113,500.00 Allocated Fixed Overheads 152,500.00 Net Income (39,000.00) Current Net Income 23,000.00 Decline in net income(23000-(-39000) 62,000.00 Q18 A)($14,000) Statement showing computations Particulars Amount Sales 15000*7.5 112,500.00 Costs: Direct Materials (150,000/100000*15000) 22,500.00 Direct Labour (125,000/100000*15000) 18,750.00 Variable Manu O/H (235,000/100000*15000) 35,250.00 Additional fixed Costs 50,000.00 Total Costs 126,500.00 Income(Sales - Costs) (14,000.00)
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