Question

Question 1 Kentucky Distributors has two divisions – Northern and Southern. The divisions have provided the...

Question 1 Kentucky Distributors has two divisions – Northern and Southern. The divisions have provided the following financial information: Northern Southern Sales $140,310 $199,080 Variable costs 98,020 117,860 Common fixed costs 51,620 57,680 Operating income ($9,330) $23,540 Kentucky’s executives are considering the elimination of the Northern division. If the division is eliminated, the common fixed costs will remain unchanged. Given these data, should the Northern division be eliminated? (Enter loss using either a negative sign preceding the number e.g. -4,527 or parentheses e.g. (4,527).) Total With Northern Without Northern Operating income $ $ Kentucky eliminate the Northern division.

Homework Answers

Answer #1

Hi

Let me know in case you face any issue:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the...
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: Total Company Southern Division Northern Division Sales $ 267,000 $ 154,400 $ 112,600 Variable expenses $ 90,908 $ 57,128 $ 33,780 Traceable fixed expenses $ 126,800 $ 55,600 $ 71,200 Common fixed expense $ 53,400 $ 30,880 $ 22,520 The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division’s break-even sales is...
Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate...
Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $218,700 and the following divisional results. Division I II III IV Sales $250,000 $198,000 $499,000 $447,000 Cost of goods sold 195,000 194,000 298,000 250,000 Selling and administrative expenses 70,300 62,000 57,000 49,000 Income (loss) from operations $ (15,300) $ (58,000) $144,000 $148,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 580,000​ $ 474,000​ Variable costs 180,000​ 229,300​ Traceable fixed costs 172,500​ 208,000​ Allocated common corporate costs 114,800​ 177,800​ Net operating income (loss) $ 112,700​ $ (141,100) ​ The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 585,000 $ 473,000 Variable costs 174,000 228,300 Traceable fixed costs 145,500 207,000 Allocated common corporate costs 131,000 176,800 Net operating income (loss) $ 134,500 $ (139,100 ) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:...
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 550,000 $ 489,500 Variable costs 198,000 258,500 Traceable fixed costs 169,500 194,400 Allocated common corporate costs 117,500 141,100 Net operating income (loss) $ 65,000 $ (104,500 ) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by...
The ABC Corporation has 2 divisions - east and west. The divisions have the following revenues...
The ABC Corporation has 2 divisions - east and west. The divisions have the following revenues and expenses: East West Sales $720,000 $350,000 Variable costs 370,000 240,000 Traceable fixed costs 130,000 80,000 Allocated common corporate costs 120,000 50,000 Net operating income (loss) $100,000 -$20,000 Management is thinking of the elimination of the West division. If the west division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data,...
Jessica Simpson, a recent graduate of Duncan accounting program, evaluated the operating performance of Duncan's Company’s...
Jessica Simpson, a recent graduate of Duncan accounting program, evaluated the operating performance of Duncan's Company’s six divisions. Jessica made the following presentation to Duncan's board of directors and suggested the Jackson Division be eliminated. “If the Jackson Division is eliminated,” she said, “our total profits would increase by $26,100.” The Other Five Divisions Jackson Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 977,300 76,800 1,054,100 Gross profit 685,700 24,100 709,800 Operating expenses 528,400 50,200 578,600 Net income...
Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s...
Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. “If the Percy Division is eliminated,” she said, “our total profits would increase by $26,500.” The Other Five Divisions Percy Division Total Sales $1,663,000 $100,000 $1,763,000 Cost of goods sold 978,100 76,800 1,054,900 Gross profit 684,900 23,200 708,100 Operating expenses 529,000 49,700 578,700 Net income...
Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s...
Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. “If the Percy Division is eliminated,” she said, “our total profits would increase by $25,900.” The Other Five Divisions Percy Division Total Sales $1,665,000 $100,600 $1,765,600 Cost of goods sold 978,500 76,600 1,055,100 Gross profit 686,500 24,000 710,500 Operating expenses 526,900 49,900 576,800 Net income...
Exercise 7-15 (Video) Your answer is partially correct. Try again. Veronica Mars, a recent graduate of...
Exercise 7-15 (Video) Your answer is partially correct. Try again. Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. “If the Percy Division is eliminated,” she said, “our total profits would increase by $26,600.” The Other Five Divisions Percy Division Total Sales $1,664,000 $100,500 $1,764,500 Cost of goods sold 978,500 76,700 1,055,200 Gross profit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT