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help please. Thank you The president of Tennessee Railroad wants to obtain an overview of the company's operations, particularly with respect to comparing freight and

help please. Thank you

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The president of Tennessee Railroad wants to obtain an overview of the company's operations, particularly with respect to comparing freight and passenger business. He has heard about "contribution" approaches to cost allocations that emphasize cost behavior patterns and contribution margins, contributions controllable by segment managers, and contributions by segments. The president has hired you as a consultant to help him. He has given you the following information. i (Click the icon to view the information.) Read the requirements. Requirement 1. The president asks you to prepare income statements, dividing the data for the company as a whole between the freight and passenger traffic and then subdividing the passenger traffic into three divisions. (Enter amounts in dollars. Leave any unused cells blank. Do not enter a "0" for any zero-balances. Use a minus sign or parentheses for any negative contributions.) Begin by preparing the income statement for the railroad as a whole, then show the income statements for the freight and passenger divisions, and finally, show the income statements for the subdivisions of the Passenger division. Railroad breakdown Breakdown of Passenger Traffic i Requirements X into two divisions Division Railroad Freight Passenger Not Division Division Division as a whole Traffic Traffic Allocated 2 3 1. The president asks you to prepare statements, dividing the data for the company as a Revenue 80,000,000 70,000,000 10,000,000 whole between the freight and passenger traffic and then subdividing the passenger traffic into three divisions. Variable costs 24,000,000 21,000,000 3,000,000 2. Some competing railroads actively promote a series of one-day sightseeing tours on Contribution margin 56,000,000 49,000,000 7,000,000 summer weekends. Most often, these tours are timed so that the cars with the tourists are hitched on with regularly scheduled passenger trains. What costs are relevant for making Separable discretionary decisions to run such tours? Other railroads, facing the same general cost structure, refuse 11,000,000 10,640,000 360,000 10,000 to conduct such sightseeing tours. Why? fixed costs 3. Suppose that the railroad has petitioned government authorities for permission to drop Contribution controllable division 1. What would be the effect on overall company net income for 20X4, assuming 45,000,000 38,360,000 6,640,000 (10,000) that the figures are accurate and that 20X4 operations are expected to be in all respects a by segment managers duplication of 20X3 operations? Separable committed costs 22,000,000 13,200,000 8,800,000 Contribution by segments 23,000,000 25, 160,000 (2,160,000) Print Done Unallocated costs 700,000 Income before taxes 22,300,000

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