Bed & Bath, a retailing company, has two departments,
Hardware and Linens. The company’s most recent...
Bed & Bath, a retailing company, has two departments,
Hardware and Linens. The company’s most recent monthly contribution
format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,340,000
$
3,150,000
$
1,190,000
Variable
expenses
1,361,000
946,000
415,000
Contribution
margin
2,979,000
2,204,000
775,000
Fixed expenses
2,220,000
1,380,000
840,000
Net operating income
(loss)
$
759,000
$
824,000
$
(65,000
)
A study indicates that $378,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will...
Bed & Bath, a
retailing company, has two departments—Hardware and Linens. The
company’s most recent monthly...
Bed & Bath, a
retailing company, has two departments—Hardware and Linens. The
company’s most recent monthly contribution format income statement
follows:
Department
Total
Hardware
Linens
Sales
$
4,130,000
$
3,110,000
$
1,020,000
Variable
expenses
1,209,000
804,000
405,000
Contribution
margin
2,921,000
2,306,000
615,000
Fixed
expenses
2,300,000
1,410,000
890,000
Net operating
income (loss)
$
621,000
$
896,000
$
(275,000
)
A study indicates that
$378,000 of the fixed expenses being charged to Linens are sunk
costs or allocated costs that will continue...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,120,000
$
3,050,000
$
1,070,000
Variable expenses
1,315,000
905,000
410,000
Contribution margin
2,805,000
2,145,000
660,000
Fixed expenses
2,320,000
1,450,000
870,000
Net operating income (loss)
$
485,000
$
695,000
$
(210,000
)
A study indicates that $374,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,330,000
$
3,180,000
$
1,150,000
Variable expenses
1,245,000
825,000
420,000
Contribution margin
3,085,000
2,355,000
730,000
Fixed expenses
2,370,000
1,480,000
890,000
Net operating income (loss)
$
715,000
$
875,000
$
(160,000
)
A study indicates that $372,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,150,000
$
3,020,000
$
1,130,000
Variable expenses
1,244,000
833,000
411,000
Contribution margin
2,906,000
2,187,000
719,000
Fixed expenses
2,320,000
1,490,000
830,000
Net operating income (loss)
$
586,000
$
697,000
$
(111,000
)
A study indicates that $372,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,130,000
$
3,020,000
$
1,110,000
Variable expenses
1,293,000
880,000
413,000
Contribution margin
2,837,000
2,140,000
697,000
Fixed expenses
2,200,000
1,400,000
800,000
Net operating income (loss)
$
637,000
$
740,000
$
(103,000
)
A study indicates that $375,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,270,000
$
3,190,000
$
1,080,000
Variable
expenses
1,236,000
833,000
403,000
Contribution
margin
3,034,000
2,357,000
677,000
Fixed
expenses
2,200,000
1,400,000
800,000
Net operating
income (loss)
$
834,000
$
957,000
$
(123,000
)
A study indicates that $374,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Exercise 12-17 Dropping or Retaining a Segment [LO12-2] Bed
& Bath, a retailing company, has two...
Exercise 12-17 Dropping or Retaining a Segment [LO12-2] Bed
& Bath, a retailing company, has two departments—Hardware and
Linens. The company’s most recent monthly contribution format
income statement follows: Department Total Hardware Linens Sales $
4,260,000 $ 3,140,000 $ 1,120,000 Variable expenses 1,233,000
820,000 413,000 Contribution margin 3,027,000 2,320,000 707,000
Fixed expenses 2,190,000 1,380,000 810,000 Net operating income
(loss) $ 837,000 $ 940,000 $ (103,000 ) A study indicates that
$375,000 of the fixed expenses being charged to Linens are...
Exercise 12-17 Dropping or Retaining a Segment [LO12-2]
Bed & Bath, a retailing company, has two...
Exercise 12-17 Dropping or Retaining a Segment [LO12-2]
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,090,000
$
3,010,000
$
1,080,000
Variable expenses
1,403,000
986,000
417,000
Contribution margin
2,687,000
2,024,000
663,000
Fixed expenses
2,370,000
1,480,000
890,000
Net operating income (loss)
$
317,000
$
544,000
$
(227,000
)
A study indicates that $379,000 of the fixed expenses being
charged to Linens are...
Sales $ 4,210,000 $ 3,040,000 $ 1,170,000 Variable expenses
1,313,000 903,000 410,000 Contribution margin 2,897,000 2,137,000...
Sales $ 4,210,000 $ 3,040,000 $ 1,170,000 Variable expenses
1,313,000 903,000 410,000 Contribution margin 2,897,000 2,137,000
760,000 Fixed expenses 2,310,000 1,420,000 890,000 Net operating
income (loss) $ 587,000 $ 717,000 $ (130,000 ) A study indicates
that $374,000 of the fixed expenses being charged to Linens are
sunk costs or allocated costs that will continue even if the Linens
Department is dropped. In addition, the elimination of the Linens
Department will result in a 18% decrease in the sales of...