Question
The operations of Ranger Corporation are divided into the Stargate Division and the Cosmos Division. Projections for the next year are as follows: Stargate Division
The operations of Ranger Corporation are divided into the Stargate Division and the Cosmos Division. Projections for the next year are as follows:
| Stargate Division | Cosmos Division | Total | |||||||||
| Sales | $ | 565,000 | $ | 383,000 | $ | 948,000 | |||||
| Less: Variable Costs | 193,000 | 213,000 | 406,000 | ||||||||
| Contribution Margin | $ | 372,000 | $ | 170,000 | $ | 542,000 | |||||
| Less: Direct Fixed Costs | 163,000 | 138,000 | 301,000 | ||||||||
| Segment Margin | $ | 209,000 | $ | 32,000 | $ | 241,000 | |||||
| Less: Allocated Common Costs | 92,000 | 68,000 | 160,000 | ||||||||
| Operating Income (Loss) | $ | 117,000 | $ | (36,000 | ) | $ | 81,000 | ||||
Operating income for Ranger Corporation, as a whole, if the Cosmos Division was dropped would be:
$117,000
$153,000
$49,000
$81,000
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Fraud Examination Investigative And Audit Procedures
Authors: Joseph T. Wells
1st Edition
089930639X, 978-0899306391
