| (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Problem 10-25 (Part Level Submission) Trent Weaver was reviewing the latest income statement for Taryn Enterprises. For the second year in a row, the Collectibles division was showing a negative segment margin, and Trent thought it was time to close the division to increase the companys operating income. The income statement that he examined follows. | Promotions Division | Collectibles Division | Total | | Revenue | $5,317,500 | $2,863,900 | $8,181,400 | | Less variable expenses | 3,652,100 | 1,647,300 | 5,299,400 | | Contribution margin | 1,665,400 | 1,216,600 | 2,882,000 | | Less traceable fixed expenses | 947,800 | 1,278,400 | 2,226,200 | | Segment margin | $717,600 | $(61,800 | ) | 655,800 | | Common fixed costs | 584,000 | | Net operating income | $71,800 | When Trent broke the news, Taylor Tatum, manager of the Collectibles division, was upset. Taylor thought that Trent could be making a snap judgment, and suggested that he look at the divisions detailed operating results. The Collectibles division is composed of two groups, Sports Memorabilia and Coins and Stamps. Sports Memorabilia accounts for 60% of the divisions sales and contribution margin; Coins and Stamps accounts for the other 40%. Sports Memorabilias traceable fixed costs are $810,800; Coins and Stamps, $246,400. Warning | Don't show me this message again for the assignment |
Ok Cancel |
|
| |
| (a) Prepare a segment margin income statement for the Collectibles division that shows the segment margin of each group. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125) and Round answers to 0 decimal places, e.g. 5,125.) | Sports Memorabilia | Coins and Stamps | Total Collectibles Division | | Segment marginTraceable fixed expensesOperating incomeContribution marginCommon fixed expensesRevenueVariable expenses | $ | $ | $ | | LessAdd: Common fixed expensesOperating incomeContribution marginSegment marginVariable expensesRevenueTraceable fixed expenses | | | | | Segment marginTraceable fixed expensesCommon fixed expensesOperating incomeRevenueVariable expensesContribution margin | | | | | Operating incomeContribution marginTraceable fixed expensesVariable expensesSegment marginCommon fixed expensesRevenue | | | | | RevenueVariable expensesOperating incomeContribution marginSegment marginTraceable fixed expensesCommon fixed expenses | $ | $ | | | Contribution marginOperating incomeVariable expensesRevenueTraceable fixed expensesSegment marginCommon fixed expenses | | | Traceable fixed expensesVariable expensesSegment marginCommon fixed expensesOperating incomeRevenueContribution margin | $ | Warning | Don't show me this message again for the assignment |
Ok Cancel | Attempts: 0 of 1 used | | Save for later | Submit Answer |
|
|
|
| |
| | (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Problem 10-26 (Part Level Submission) Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joints. The company has two divisions, Sole Inserts and Heel Inserts. A segmented income statement from last month follows. | Sole Inserts Division | Heel Inserts Division | Total Shoe Shock | | Revenue | $493,000 | $2,533,000 | $3,026,000 | | Less variable expenses | 301,000 | 2,023,000 | 2,324,000 | | Contribution margin | 192,000 | 510,000 | 702,000 | | Less traceable fixed expenses | 122,300 | 350,000 | 472,300 | | Segment margin | $69,700 | $160,000 | 229,700 | | Common fixed costs | 174,100 | | Net operating income | $55,600 | Chris Kelly is Shoe Shocks sales manager. Although this statement provides useful information, Chris wants to know how well the companys two distribution channels, specialty footwear stores and drug stores, are performing. Marketing data indicates that 20% of sole inserts and 75% of heel inserts are sold through specialty footwear stores. A recent analysis of corporate fixed costs revealed that 50% of all fixed costs are traceable to specialty footwear stores and 45% of all fixed costs to drug stores. Warning | Don't show me this message again for the assignment |
Ok Cancel |
|
| |
| (a) Prepare a segment margin income statement for Shoe Shocks two distribution channels. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).) | Specialty Footwear Stores | Drug Stores | Total Shoe Shock | | Contribution marginVariable expensesOperating incomeTotal variable expensesRevenueCommon fixed expensesSole insertsTraceable fixed expensesSegment marginHeel insertsTotal revenue | | Operating incomeSole insertsContribution marginCommon fixed expensesTotal variable expensesHeel insertsRevenueTotal revenueTraceable fixed expensesVariable expensesSegment margin | $ | $ | $ | | Segment marginTotal revenueRevenueHeel insertsSole insertsCommon fixed expensesTotal variable expensesOperating incomeContribution marginTraceable fixed expensesVariable expenses | | | | | Segment marginTotal revenueVariable expensesCommon fixed expensesTotal variable expensesRevenueOperating incomeContribution marginTraceable fixed expensesSole insertsHeel inserts | $ | $ | $ | | LessAdd: traceable fixed expensessegment marginoperating incomecommon fixed expensesvariable expensestotal revenuerevenuetotal variable expensessole insertsheel insertscontribution margin | | Traceable fixed expensesSegment marginOperating incomeVariable expensesCommon fixed expensesContribution marginTotal variable expensesSole insertsRevenueTotal revenueHeel inserts | | | | | Total variable expensesContribution marginSole insertsCommon fixed expensesHeel insertsSegment marginRevenueTotal revenueTraceable fixed expensesOperating incomeVariable expenses | | | | | Segmented marginTotal revenueRevenueTotal variable expensesContribution marginTraceable fixed expensesCommon fixed expensesSole insertsHeel insertsOperating incomeVariable expenses | | | | | Operating incomeTraceable fixed expensesContribution marginCommon fixed expensesSegmented marginRevenueSole insertsVariable expensesHeel insertsTotal revenueTotal variable expenses | | | | | Sole insertsSegmented marginHeel insertsCommon fixed expensesVariable expensesTotal revenueOperating incomeTotal variable expensesContribution marginTraceable fixed expensesRevenue | | | | | Heel insertsContribution marginTraceable fixed expensesTotal variable expensesRevenueSegmented marginCommon fixed expensesSole insertsTotal revenueOperating incomeVariable expenses | $ | $ | | | Heel insertsOperating incomeCommon fixed expensesTotal revenueRevenueVariable expensesTotal variable expensesSole insertsSegmented marginContribution marginTraceable fixed expenses | | | RevenueCommon fixed expensesSegmented marginVariable expensesTraceable fixed expensesTotal variable expensesTotal revenueOperating incomeSole insertsHeel insertsContribution margin | $ | Warning | Don't show me this message again for the assignment |
Ok Cancel | Attempts: 0 of 1 used | | Save for later | Submit Answer |
|
|
|
| |
| | (b) Problem 10-27 (Part Level Submission) Hamilton and Battles, Ltd. produces and sells two productsguitar cases and violin cases. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product lines return on investment. The following data is from the most recent year of operations. | Guitar Cases | Violin Cases | | Sales | $3,000,000 | $4,522,000 | | Variable costs | 1,232,000 | 2,719,000 | | Direct fixed costs | 1,444,100 | 1,532,400 | | Average assets | 2,000,000 | 1,500,000 | Warning | Don't show me this message again for the assignment |
Ok Cancel |
|
| |
| (a) Calculate the margin and asset turnover for each product line. (Round answers to 2 decimal places, e.g. 5.12 and 5.12%.) | Guitar Cases | Violin Cases | | Margin | % | % | | Asset turnover | | | Warning | Don't show me this message again for the assignment |
Ok Cancel |
|
|
Problem 11-18 (Part Level Submission) Shields Manufacturing produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the companys expenses have risen, management has become concerned with the need to streamline various processes in order to reduce costs without reducing quality. The following table shows the time needed to produce a batch of 1-inch plant flats: | Activity | Time to Complete | | Materials moved to production floor | 30minutes | | Production in station 1 | 34minutes | | Materials moved to station 2 | 4minutes | | Wait to begin at station 2 | 8minutes | | Production in station 2 | 47minutes | | Inspection | 5minutes | | Materials moved to finished goods inventory | 7minutes | Warning | Don't show me this message again for the assignment |
Ok Cancel |
|
| |
| (a) & (b) | (a) | What is the manufacturing cycle time (throughput time) to produce a batch of 1-inch plant flats and prepare it for sale? | | Manufacturing cycle time | minutes |
| | (b) | How much of the process time is value-added? | | | Warning | Don't show me this message again for the assignment |
Ok Cancel | Attempts: 0 of 1 used | | Save for later | |
|
|
|
|
|
|
|
|
|
|
|
