Explanation of each calculation please
This Question: 1 pt 2 of 4 (2 complete) This Quiz: 4 pts possi Pawsh operates a pet supply superstore in Atlanta with three main product lines: food, toys, and accessories. Pawsh allocates common selling, general, and administration (SG&A) costs to each product line using the cost of merchandise of each product line. Department manager salaries, while considered SG&A, are direct and are assigned directly to each product line. The company wants to optimize the pricing and cost management of each product line and is wondering whether its accounting system is providing it with the best information for making such decisions. Store manager John Winnie gathers the following information regarding the three product lines: Click the icon to view the product line information.) For 2020, Pawsh budgets the following selling, general, and administration costs: (Click the icon to view the selling, general, and administration costs.) Read the requirements In this step, prepare an income statement for Pawsh, by product line and in total, allocating common SG&A expenses using the method you proposed in this requirement. In the following step calculate the profit per square foot of store space for each product line. (Use parentheses or a minus sign to enter losses. Round the profit (loss) per square foot to the nearest cent, $X.XX.) Pawsh Budgeted Income Statement For the Year Ended December 31, 2020 Food Toys Accessories Total Revenues Cost of merchandise Gross margin Selling, general, & administrative costs Operating income (loss) Square feet of store space Profit (loss) per square foot Compare your results to the results in requirement 1 on a profit/loss per square foot basis. Review the income statement from requirement 1. is/are more profitable per square foot and is/are less profitable per square foot under the system used in requirement 2 compared to the simple system. These results are The reason is Comparing the product line income statements in requirements 1 and 2, it appears that that the departments use Requirement 3. What recommendations would you make to the store manager based on the results of the activity-based costing analysis? The recommendation is that the organization switch to V method. With this method, the product lines are assigned indirect costs based on their V. By adopting V. The current accounting technique V management can evaluate the costs of operating the three product lines and make more informed pricing and product mix because it decisions Choose from any list or enter any number in the input fields and then continue to the next question. This Question: 1 pt 2 of 4 (2 complete) This Quiz: 4 pts poss Pawsh operates a pet supply superstore in Atlanta with three main product lines: food, toys, and accessories. Pawsh allocates common selling, general, and administration (SG&A) costs to each product line using the cost of merchandise of each product line. Department manager salaries, while considered SG&A, are direct and are assigned directly to each product line. The company wants to optimize the pricing and cost management of each product line and is wondering whether its accounting system is providing it with the best information for making such decisions. Store manager John Winnie gathers the following information regarding the three product lines: (Click the icon to view the product line information.) For 2020, Pawsh budgets the following selling, general, and administration costs: (Click the icon to view the selling, general, and administration costs.) Read the requirements In this step, prepare an income statement for Pawsh, by product line and in total, allocating common SG&A expenses using the me profit (loss) per square foot to the nearest cent, $X.XX.) Data Table .X Tofie Data Table - X Pawsh Pawsh Budgeted Income Statement For the Year Ended December 31, 2020 Food Toys Pawsh Product-Line Information SG&A Costs Accessories Total for the Year Ended December 31, 2020 Revenues $ 192,000 Cost of merchandise 237,500 Gross margin Purchasing department expense Receiving department expense Selling expense Rent Store manager's salary 1,134,000 Selling, general, & administrative costs 465,000 for the Year Ended December 31, 2020 Food Toys Accessories Total Revenues $ 6,300,000 $ 3,780,000 $ 2,520,000 $ 12,600,000 Cost of merchandise $ 3,500,000 $ 2,100,000 $ 1,400,000 $ 7,000,000 Salary of department manager 64,000 $ 60,000 $ 62,000 $ 186,000 Number of purchase orders placed 960 640 1,600 3,200 Number of boxes received 2.850 950 5.700 9.500 Square feet of store space 11,900 2.200 4,500 18,600 Operating income (loss) Square feet of store space 378,000 63,240 Utilities $ 2,469,740 Profit (loss) per square foot Total Compare your results to the results in requirement 1 on a profit/loss per square foot basis. Review the income statement from requirement 1. Print Done Done Print Done is/are more profitable per square foot and is/are less profitable per square foot under the system used in requirement 2 compared to the simple system. These results are The reason is Comparing the product line income statements in requirements 1 and 2, it appears that that the departments use Requirement 3. What recommendations would you make to the store manager based on the results of the activity-based costing analysis? The recommendation is that the organization switch to V method. With this method, the product lines are assigned indirect costs based on their V. By adopting V. The current accounting technique V, management can evaluate the costs of operating the three product lines and make more informed pricing and product mix because it decisions Choose from any list or enter any number in the input fields and then continue to the next
