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
Business   Accounting   
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Homework Answers

Answer #1

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

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