Question

Figure 8-10. Nauman Company has the following information pertaining to its two divisions for last year:...

Figure 8-10.
Nauman Company has the following information pertaining to its two divisions for last year:

 Division X Division Y Variable selling and admin. expenses \$ 70,000 \$ 90,000 Direct fixed expenses 35,000 100,000 Sales 200,000 400,000 Direct fixed selling and admin. expenses 30,000 70,000 Variable expenses 40,000 100,000

Common expenses are \$24,000 for the year.

9. Refer to Figure 8-10. What is the segment margin for Division Y?

 a. \$310,000 b. \$210,000 c. \$240,000 d. \$40,000

10. Refer to Figure 8-10. What is the income for Nauman Company?

 a. \$65,000 b. \$325,000 c. \$300,000 d. \$41,000

Figure 8-11.
Tyler Company has the following information pertaining to its two product lines for last year:

 Product A Product B Variable selling and admin. expenses \$38,000 \$31,000 Direct fixed expenses 19,500 34,500 Sales 250,000 210,000 Direct fixed selling and admin. expenses 38,000 22,000 Variable expenses 42,000 31,000 Operating income \$112,500 \$91,500

Common expenses are \$105,000 for the year.

11. Refer to Figure 8-11. What is the segment margin for Product B?

 a. \$155,000 b. \$105,000 c. \$85,000 d. \$91,500

12. Refer to Figure 8-11. What is the income for Tyler Company?

 a. \$101,000 b. \$120,500 c. \$99,000 d. \$102,500

8-10.

 Division X Division Y Sales \$200000 \$400000 Less: Variable expenses 40000 100000 Variable selling and admin. expenses 70000 90000 Direct fixed selling and admin. expenses 30000 70000 Direct fixed expenses 35000 100000 Margin \$25,000 \$40000

Segment margin for Division Y = \$40,000

Income for Nauman Company = \$25000+40000 - 24000 = \$41,000

8-11.

 Product A Product B Sales \$250000 \$210000 Less: Variable expenses 42000 31000 Variable selling and admin. expenses 38000 31000 Direct fixed selling and admin. expenses 38000 22000 Direct fixed expenses 19500 34500 Margin \$112,500 \$91,500

Segment margin for Product = \$91,500

Income for Nauman Company = \$112500+ 91500 - 105000 = \$99000

Earn Coins

Coins can be redeemed for fabulous gifts.