1.)

Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 8.00 $ 37.00 Variable expenses per unit $ 2.80 $ 10.00 Traceable fixed expenses per year $ 137,000 $ 39,000 Last year the company produced and sold 36,000 units of Weedban and 18,000 units ofGreengrow. Its annual common fixed expenses are $104,000; Required: Prepare a contribution format income statement segmented by product lines Piedmont Company segments its business into two regionsNorth and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales 5 750,000 $ 500,000 $ 250,000 Variable expenses 450,000 350,000 100,000 Contribution margin 300,000 150,000 150,000 Traceable fixed expenses 138,000 69,000 69,000 Segment margin 162,000 $ 31,000 $ 81,000 Common fixed expenses 60,000 Net operating income $ 102,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,586,000 Variable expenses 545,540 Contribution margin 1,040,460 Fixed expenses 1,145,000 Net operating income (loss) 5 (104,540) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 416,000 $ 670,000 $ 500,000 Variable expenses as a percentage of sales 44% 25% 39% Traceable fixed expenses $ 297,000 $ 330,000 $ 202,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the beliefthat it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2b. Would you recommend the increased advertising? Required information [The following information applies to the questions displayed below] Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone in Chicago and one in Minneapolis. The firm classifies the direct costs of consultingjobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: Office Total Company Chicago Minneapolis Sales 3 490,500 100.00% $ 163,500 100.00% $ 327,000 100.00% Variable expenses 245,250 50.00% 49,050 30.00% 196,200 60.00% Contribution margin 245,250 50.00% 114,450 70.00% 130,800 40.00% Traceable fixed expenses 137,340 28.00% 85,020 52.00% 52,320 16.00% Office segment margin 107,910 22.00% $ 29,430 18-00% 5 78,480 24.00% Common fixed expenses not traceable to offices 68,670 14.00% Net operating income $ 39,240 8.00% Required: 1a. Compute the companywide break-even point in dollar sales. 1b. Compute the breakeven point for the Chicago office and for the Minneapolis office. 1c. Is the companywide breakeven point greater than, less than, or equal to the sum of the Chicago and Minneapolis breakeven points? 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $81,750 per year? Assume no change in cost behavior patterns. 3. Assume that sales in Chicago increase by $54,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs; a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.\" Required information [The following information applies to the questions displayed below. ] Raner, Harris and Chan is a consulting rm that specializes in information systems for medical and dental clinics. The firm has two officesone in Chicago and one in Minneapolis. The firm classifies the direct costs of consultingjobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: Office Total Company Chicago Minneapolis Sales $ 450,000 100% $ 150,000 100% $ 300,000 100% Variable expenses 225,000 50% 45,000 30% 180,000 60% Contribution margin 225,000 50% 105,000 70% 120,000 40% Traceable fixed expenses 126,000 28% 78,000 52% 48,000 16% Office segment margin 99,000 22% $ 27,000 18% $ 72:000 24% Common fixed expenses not traceable to offices 63,000 14% Net operating income $ 36,000 8% Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales $ 300,000 100% $ 200,000 100% $ 100,000 100% Variable expenses 180,000 60% 128,000 64% 52,000 52% Contribution margin 120,000 40% 72,000 36% 48,000 48% Traceable fixed expenses 33,000 11% 12,000 6% 21,000 21% Market segment margin 87,000 29% $ 60,000 30% $ 27,000 27% Common fixed expenses not traceable to markets 15,000 5% Office segment margin $ 72,000 24% The company would like to initiate an intensive advertising campaign in one ofthe two market segments during the next month. The campaign would cost $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign