Question

13).Cincinnati Supply Corp., a supplier to Kraft Foods, has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $230,000, variable expenses of $131,100, and traceable fixed expenses of $63,300. The Charlie Division has sales of $540,000, variable expenses of $307,800, and traceable fixed expenses of $120,700. The total amount of common fixed expenses not traceable to the individual divisions is $119,200. What is the company's net operating income?

a).$27,900 b).$331,100 c).$147,100 d).$211,900

14).Data for March for Cincinnati Supply Corp., a supplier to Proctor and Gamble, and its two major divisions, Hair Care and Skin Care, appear below:

Sales revenue, Hair Care $500,000

Variable expenses, Hair Care $300,000

Sales revenue, Skin Care $750,000

Variable expenses, Skin Care $325,000

In addition, total fixed expenses are $ 500,000. Of that amount $75,000 is traceable to the Hair Care division and $150,000 is traceable to the Skin Care division.

The contribution margin ratio of the Skin Care division is:

a).57% b).50% c).40% d).25%

15).LeFemme sold 1,200 units at $12 each. Cost incurred were: $0.50 direct material; $2 direct labor; $1.50 overhead; $1 variable selling expenses and $6,300 fixed selling expenses per year. How much is total sales revenue?

a).$9,600 b).$14,400 c).$2,100 d).$1,200

16).LeFemme sold 1,200 units at $12 each. Cost incurred were: $0.50 direct material; $2 direct labor; $1.50 overhead; $1 variable selling expenses and $6,300 fixed selling expenses per year. How much is total gross margin?

a).$8,400 b).$6,000 c).$4,800 d).$9,600

Answer 1