Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show workings Question 12 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Bridgeport Company's six divisions. Veronica made

image text in transcribedimage text in transcribed

please show workings

Question 12 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Bridgeport Company's six divisions. Veronica made the following presentation to Bridgeport's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,700." Sales Cost of goods sold Gross profit Operating expenses The Other Percy Five Divisions Division Total $1,663,000 $100,900 $1,763,900 977,800 76,100 1,053,900 685,200 24,800 710,000 526,900 50,500 577,400 $158,300 $ (25,700) $132,600 Net income In the Percy Division, cost of goods sold is $59,300 variable and $16,800 fixed, and operating expenses are $30,400 variable and $20,100 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Sales $ Variable costs Cost of goods sold Operating expenses Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) $ $ Veronica is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114

More Books

Students also viewed these Accounting questions

Question

How has health psychology expanded into traditional health fields?

Answered: 1 week ago

Question

How might a countrys culture be a barrier to global business?

Answered: 1 week ago