1:47 . ./ LTE File Details [FA22] - ACC.212.40 - Principles of Ac... Instructions: ACC 214 - Lab #9 for Chapter 23 The Jones-Pitt Company has 3 separate branches (divisions): X manufactures utensils, Each branch (division) operates in its own facility. The administrative offices are located in a separate building, and administrative-facility evel costs are allocated among branches A, B and C. The branch income statements are presented for the year 2021; Branch C has experienced a Net Loss. Branch C has suffered losses in recent years, and the company expects C to continue to operate at a loss Income Statements by Branch: (Note: no formulas have been used to present the data.) Division Division |Division A B C Sales 2,400,000 1,500,000 1,700,000 Less: Cost of Goods Sold Unit-level Manufacturing Costs (1,250,000) (620,000) (890,000) Rent on Manufacturing Facility (340,000) (320,000) (440,000 Gross Margin 10,000 560,000 370,000 Less: Operating Expenses Unit-Level Selling and Admin. Expenses (90,000) (75,000) (150,000) Division-Level Fixed Selling and Admin. Expenses (160,000) (115,000) (240,000) Administrative Facility-Level Costs 90,000 (90,000 (90,000 Net Income (loss) 470,000 280,000 (110,000) Requirements - using the provided Excel file: a. Based on the information above, recommend whether Division C should be eliminated. Support your answer by preparing company-wide income statements - one with Division C and one without Division C. b. During 2021, Division C produced and sold 30,000 units of product. Would your recommendation in part (a.) change if sales and production increase to 35,000 units? Support your answer by comparing differential revenue and avoidable cost for Division C, assuming that 35,000 units are sold. c. Suppose that the company could sublease Division C's manufacturing facility for $610,000. Would you operate the division at a production and sales volume of 35,000 units or would you sublease? Support your answer with appropriate computations using Excel. Note: you must show supporting schedules/calculations on the Excel worksheet. Pre...ous n Dashboard Calendar To Do Notifications Inbox