Total
Store A
Store B
Sales
$1,000,000
$400,000
$600,000
Variable expenses
580,000
160,000
420,000
Contribution margin...
Total
Store A
Store B
Sales
$1,000,000
$400,000
$600,000
Variable expenses
580,000
160,000
420,000
Contribution margin
420,000
240,000
180,000
Traceable fixed expenses
300,000
100,000
200,000
Store segment margin
120,000
140,000
-20,000
Common fixed expenses
50,000
20,000
30,000
Net operating income
$70,000
$120,000
($50,000)
Due to its poor showing, consideration is being given to closing
Store B. Studies show that if Store B is closed, one-fourth of its
traceable fixed expenses will continue unchanged. The studies also
show that closing Store...
ABC Company operates three segments, of which two of them were
showing a loss.
Segment 1...
ABC Company operates three segments, of which two of them were
showing a loss.
Segment 1
Segment 2
Segment 3
Total
Sales……………………
$100,000
$200,000
$300,000
$600,000
Less Cost of goods sold
80,000
150,000
200,000
430,000
Gross margin………….
20,000
50,000
100,000
170,000
Less Operating expenses
30,000
70,000
70,000
170,000
Net operating income….
$(10,000)
$(20,000)
$30,000
$0
For each segment, 40% of its cost
of goods sold and operating expenses are variable expenses and the
remaining balances are fixed...
Northern Stores is a retailer in the upper Midwest. The most
recent monthly income statement for...
Northern Stores is a retailer in the upper Midwest. The most
recent monthly income statement for Northern Stores is given
below:
Total
Store I
Store II
Sales
$2,100,000
$1,300,000
$800,000
Less: Variable Expenses
1,260,000
882,000
378,000
Contribution Margin
840,000
418,000
422,000
Less: Traceable fixed expenses
420,000
231,000
189,000
Segment margin
420,000
187,000
233,000
Less: Common fixed expenses
350,000
210,000
140,000
Net Income
$70,000
$(23,000)
$93,000
Northern is considering closing Store I. If Store I is closed,
one-fourth of its traceable...
Superior Markets, Inc., operates three stores in a large
metropolitan area. A segmented absorption costing income...
Superior Markets, Inc., operates three stores in a large
metropolitan area. A segmented absorption costing income statement
for the company for the last quarter is given below:
Superior Markets, Inc.
Income Statement
For the Quarter Ended September 30
Total
North
Store
South
Store
East
Store
Sales
$
3,000,000
$
720,000
$
1,200,000
$
1,080,000
Cost of goods sold
1,657,200
403,200
660,000
594,000
Gross margin
1,342,800
316,800
540,000
486,000
Selling and administrative
expenses:
Selling expenses:
817,000
231,400
315,000
270,600
Administrative expenses...
Problem 12-26 Close or Retain a Store [LO12-2]
Superior Markets, Inc., operates three stores in a...
Problem 12-26 Close or Retain a Store [LO12-2]
Superior Markets, Inc., operates three stores in a large
metropolitan area. A segmented absorption costing income statement
for the company for the last quarter is given below:
Superior Markets, Inc.
Income Statement
For the Quarter Ended September 30
Total
North
Store
South
Store
East
Store
Sales
$
4,000,000
$
840,000
$
1,600,000
$
1,560,000
Cost of goods sold
2,200,000
495,000
847,000
858,000
Gross margin
1,800,000
345,000
753,000
702,000
Selling and administrative
expenses:...
A company has two products: A and B. Product A has sales of
$100,000, variable cost...
A company has two products: A and B. Product A has sales of
$100,000, variable cost of $50,000, direct fixed costs of $40,000,
and allocated common fixed costs of $20,000. Product B has sales of
$150,000, variable cost of $70,000, direct fixed costs of $30,000,
and allocated common fixed costs of $40,000. If product A is
dropped, what will be the profit of the company?. Single
choice.
$10,000 profit
$0 (no profit or loss)
$10,000 loss
$20,000 profit
Required information
[The following information applies to the questions
displayed below.]
This firm has two...
Required information
[The following information applies to the questions
displayed below.]
This firm has two offices—one in Paris and one in Italy. The
firm classifies the direct costs of consulting jobs as variable
costs. A contribution format segmented income statement for the
company’s most recent year is given:
Office
Total Company
Paris
Italy
Sales
$
450,000
100.0
%
$
90,000
100
%
$
360,000
100
%
Variable expenses
243,000
54.0
%
27,000
30
%
216,000
60
%
Contribution margin...
Problem 11-26 Close or Retain a Store [LO11-2]
Superior Markets, Inc., operates three stores in a...
Problem 11-26 Close or Retain a Store [LO11-2]
Superior Markets, Inc., operates three stores in a large
metropolitan area. A segmented absorption costing income statement
for the company for the last quarter is given below:
Superior Markets, Inc.
Income Statement
For the Quarter Ended September 30
Total
North
Store
South
Store
East
Store
Sales
$
4,800,000
$
960,000
$
1,920,000
$
1,920,000
Cost of goods sold
2,640,000
600,000
984,000
1,056,000
Gross margin
2,160,000
360,000
936,000
864,000
Selling and administrative expenses:...