The following data have been extracted from the year-end reports of two companies - Company X and Company Y: Company X Company Y Sales P.800.000 Net Qberatiog losome 56.000 Average Operating Assets ? P 125,000 Margin ? 4 % Tumover ? 6 Retum on Investment 14 96 ? Required: Fill in the missing date on the above table. 1 - 4 The Rialto Company's income statement for May is given below. Total Division L Division M Sales P300,000 P165,000 P135,000 Variable expenses. 153,000 99.000 54,000 Contribution margin. 147,000 66,000 81.000 Traceable fixed expenses 97.000 45.000 52.000 Segment margin 50,000 P211000 P. 29.000 Common fixed expenses 25.000 Net operating income.. P225.000 1. If sales for Division L increase P30,000 with a P9,000 increase in the Division's traceable fixed expenses, the overall company net operating income should: A) degrease by P4,000 C) increase by P3,000 B) increase by P21,000 D increase by P5.700 2. During May, the sales clerks in Division L received salaries totsing P25,000. Assume that during June the salaries of these sales clerks are discontinued and instead they are paid a commission of 18% of sales. If sales in Division L increase by P35,000 as a result of this change, the dune segment margin for Division L should be A) P 30,300 Bi P 24,000 CP 5.300 DP 60.000 3. If the sales in Division Mincrease by 25% while traceable foed expenses decrease by P 7.000. the segment margin for Division M should A increase by P 13 250 c) decrease by P 17.750 B) Increase by P. 7.250 D) increase by P 27.250 4. A proposalhas been made that will lower variab e costs in Division M to 37% of sales The reduction can be accomplished only if Division is traceable fixed costs are allowed to nere are 12.000 If this proposolemented and if sales remain constant. Overall company netopereling income should increase 12 000 degresse qy 2.7 950 Bindres se dy 15.050 Bu decrease by 12.000