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72. Sugiki Corporation has two divisions: the Alpha Division and the Delta Division. The Alpha
Division has sales of $820,000, variable expenses of $369,000, and traceable fixed expenses of
$347,300. The Delta Division has sales of $460,000, variable expenses of $294,400, and traceable
fixed expenses of $134,100. The total amount of common fixed expenses not traceable to the
individual divisions is $97,300. What is the company's net operating income?
5-64
73. Phillipson Corporation has two divisions: the IEB Division and the PIH Division. The
corporation's net operating income is $83,900. The IEB Division's divisional segment margin is
$149,700 and the PIH Division's divisional segment margin is $60,100. What is the amount of the
common fixed expense not traceable to the individual divisions?
The Pacific Company manufactures a single product. The following data relate to the year
just completed:
During the last year, 5,000 units were produced and 4,800 units were sold. There were no
beginning inventories.
74. Under variable costing, the unit product cost would be:
75. The carrying value of finished goods inventory at the end of the year under variable
costing would be:
5-67
76. Under absorption costing, the cost of goods sold for the year would be:
Carr Company produces a single product. During the past year, Carr manufactured 25,000
units and sold 20,000 units. Production costs for the year were as follows:
Sales totaled $850,000, variable selling expenses totaled $110,000, and fixed selling and
administrative expenses totaled $170,000. There were no units in beginning inventory. Assume
that direct labor is a variable cost.
77. The contribution margin per unit would be:
78. Under absorption costing, the ending inventory for the year would be valued at:
79. The net operating income for the year under variable costing would be:
Favini Company, which has only one product, has provided the following data concerning
its most recent month of operations:
80. What is the unit product cost for the month under variable costing?
81. What is the unit product cost for the month under absorption costing?
82. What is the net operating income for the month under variable costing?
83. What is the net operating income for the month under absorption costing?
Hadlock Company, which has only one product, has provided the following data
concerning its most recent month of operations:
84. What is the unit product cost for the month under variable costing?
85. The total contribution margin for the month under the variable costing approach is:
86. What is the total period cost for the month under the variable costing approach?
87. What is the net operating income for the month under variable costing?
Abe Company, which has only one product, has provided the following data concerning its
most recent month of operations:
88. What is the unit product cost for the month under variable costing?
89. What is the unit product cost for the month under absorption costing?
