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QUESTION 5 ( 33 marks: 40 minutes) Syarikat Penyu Sdn Bhd management is trying to decide whether to eliminate Department Z, which has produces
QUESTION 5 ( 33 marks: 40 minutes) Syarikat Penyu Sdn Bhd management is trying to decide whether to eliminate Department Z, which has produces low profits or losses for several years. The company's 2012 departmental income statement shows the following: Syarikat Penyu Sdn Bhd Departmental Income Statements For the year ended December 31, 2012 Dept A Dept Z Combine d Sales RM350,00 RM87,500 RM437,500 0 Cost of goods sold 230,650 62,550 Gross profit 119,350 24,950 293,200 144,30 0 Operating expenses: Direct expenses: Advertising 13,500 1,500 15,000 Store supplies used 2,800 700 3,500 Depreciation Store 7,000 3,500 10,500 equipment Total direct expenses 23,300 5,700 29,000 Allocated expenses: Sales salaries 35,100 11,700 46,800 Rent expense 11,040 2,760 13,800. Bad debt expense 10,500 2,000 12,500 Office salary 10,400 2,600 13,000 Insurance expense 2,100 700 2,800 Miscellaneous office 850 1,250 2,100 expenses Total allocated expenses 69,990. 21,010 91,000 Total expenses 93,290 26,710 120,00 9/10
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