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57. Craft Company produces a single product. Last year, the company had a net operating
income of $80,000 using absorption costing and $74,500 using variable costing. The fixed
manufacturing overhead cost was $5 per unit. There were no beginning inventories. If 21,500
units were produced last year, then sales last year were:
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58. Moore Company produces a single product. During last year, Moore's variable production
costs totaled $10,000 and its fixed manufacturing overhead costs totaled $6,800. The company
produced 5,000 units during the year and sold 4,600 units. There were no units in the beginning
inventory. Which of the following statements is true?
59. Last year, Salada Corporation's variable costing net operating income was $97,000. Fixed
manufacturing overhead costs released from inventory under absorption costing amounted to
$14,000. What was the absorption costing net operating income last year?
60. Tsuchiya Corporation manufactures a variety of products. Last year, the company's
variable costing net operating income was $57,500. Fixed manufacturing overhead costs deferred
in inventory under absorption costing amounted to $35,400. What was the absorption costing net
operating income last year?
61. Stephen Company produces a single product. Last year, the company had 20,000 units in
its ending inventory. During the year, Stephen's variable production costs were $12 per unit. The
fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The company's net
operating income for the year was $9,600 higher under variable costing than it was under
absorption costing. The company uses a last-in-first-out (LIFO) inventory flow assumption. Given
these facts, the number of units of product in the beginning inventory last year must have been:
62. Hansen Company produces a single product. During the last year, Hansen had net
operating income under absorption costing that was $5,500 lower than its income under variable
costing. The company sold 9,000 units during the year, and its variable costs were $10 per unit, of
which $6 was variable selling expense. If fixed production cost is $5 per unit under absorption
costing every year, then how many units did the company produce during the year?
63. Hatch Company has two divisions, O and E. During the year just ended, Division O had a
segment margin of $9,000 and variable expenses equal to 70% of sales. Traceable fixed expenses
for Division E were $19,000. Hatch Company as a whole had a contribution margin ratio of 40%, a
segment margin of $25,000, and sales of $200,000. Given this data, the sales for Division E for
last year were:
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64. During April, Division D of Carney Company had a segment margin ratio of 15%, a variable
expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were
closest to:
65. Colasuonno Corporation has two divisions: the West Division and the East Division. The
corporation's net operating income is $88,800. The West Division's divisional segment margin is
$39,500 and the East Division's divisional segment margin is $166,900. What is the amount of the
common fixed expense not traceable to the individual divisions?
66. Gore Corporation has two divisions: the Business Products Division and the Export
Products Division. The Business Products Division's divisional segment margin is $55,700 and
the Export Products Division's divisional segment margin is $70,600. The total amount of common
fixed expenses not traceable to the individual divisions is $107,400. What is the company's net
operating income?
67. More Company has two divisions, L and M. During July, the contribution margin in
Division L was $60,000. The contribution margin ratio in Division M was 40% and its sales were
$250,000. Division M's segment margin was $60,000. The common fixed expenses were $50,000
and the company net operating income was $20,000. The segment margin for Division L was:
68. Stephen Company has the following data for its three stores last year:
Given the above data, the total company sales were:
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69. Johnson Company operates two plants, Plant A and Plant B. Last year, Johnson Company
reported a contribution margin of $40,000 for Plant A. Plant B had sales of $200,000 and a
contribution margin ratio of 40%. Net operating income for the company was $27,000 and
traceable fixed expenses for the two stores totaled $50,000. Johnson Company's common fixed
expenses were:
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70. The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has
traceable fixed expenses of $146,280 and the DBD/Video Sales has traceable fixed expenses of
$81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed
expenses?
71. Leis Retail Company has two Stores, M and N. Store N had sales of $180,000 during
March, a segment margin of $54,000, and traceable fixed expenses of $26,000. The company as a
whole had a contribution margin ratio of 25% and $120,000 in total contribution margin. Based on
this information, total variable expenses in Store M for the month must have been:
