144. What was the absorption costing net operating income last year?
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145. What was the absorption costing net operating income this year?
Vanstee Corporation manufactures a variety of products. Variable costing net operating
income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed
manufacturing overhead costs were deferred in inventory under absorption costing. This year,
$8,000 in fixed manufacturing overhead costs were released from inventory under absorption
costing.
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146. What was the absorption costing net operating income last year?
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147. What was the absorption costing net operating income this year?
Condit Corporation manufactures a variety of products. Variable costing net operating
income was $75,600 last year and was $80,100 this year. Last year, inventory decreased by 3,400
units. This year, inventory increased by 3,000 units. Fixed manufacturing overhead cost is $5 per
unit.
148. What was the absorption costing net operating income last year?
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149. What was the absorption costing net operating income this year?
The Rial Company’s income statement for June is given below:
150. If sales for Division F increase $40,000 with a $10,000 increase in the Division’s traceable
fixed costs, the overall company net operating income should:
151. During June, the sales clerks in Division F received salaries totaling $35,000. Assume that
during July the salaries of these sales clerks are discontinued and instead they are paid a
commission of 18% of sales. If sales in Division F increase by $65,000 as a result of this change,
the July segment margin for Division F should be:
152. If the sales in Division L increase by 30% while common fixed expenses in the company
decrease by $10,000, the segment margin for Division L should:
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153. A proposal has been made that will lower variable expenses in Division L to 35% of sales.
However, this reduction can only be accomplished by a $15,000 increase in Division L’s traceable
fixed expenses. If this proposal is implemented and if sales remain constant, overall company net
operating income should:
Pong Incorporated’s income statement for the most recent month is given below.
154. If Store G sales increase by $40,000 with no change in fixed costs, the overall company
net operating income should:
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155. The marketing department believes that a promotional campaign for Store H costing
$8,000 will increase the store’s sales by $15,000. If the campaign is adopted, overall company net
operating income should:
Ring, Incorporated’s income statement for the most recent month is given below.
refer back to the original data.
156. If Store Q sales increase by $30,000 with no change in fixed expenses, the overall
company net operating income should:
157. The marketing department believes that a promotional campaign at Store P costing
$5,000 will increase sales by $15,000. If the campaign is adopted, overall company net operating
income should:
158. A proposal has been made that will lower variable costs in Store P to 65% of sales.
However, this reduction can only be accomplished by a $16,000 increase in Store P’s traceable
fixed costs. If this proposal is implemented and sales remain constant, overall company net
operating income should:
159. If sales in Store Q increase by $30,000 as a result of a $7,000 increase in traceable fixed
costs:
160. Currently the sales clerks receive a salary of $17,000 per month in Store Q. A proposal
has been made to change from a fixed salary to a sales commission of 5%. Assume that this
proposal is adopted, and that as a result sales in Store Q increase by $40,000. The new segment
margin for Store Q should be:
The Gasson Company sells three products, Product A, Product B and Product C, and had
sales of $1,000,000 during the month of June. The company’s overall contribution margin ratio
was 37% and fixed expenses totaled $350,000. Sales were: Product A, $500,000; Product B,
$300,000; and Product C, $200,000. Traceable fixed costs were: Product A, $120,000; Product B,
$100,000; and Product C, $60,000. The variable expenses of Product A were $300,000 and the
variable expenses of Product B were $180,000.
161. The net operating income for the company as a whole for June was:
162. The contribution margin ratio for Product C is:
0.25
163. The common fixed expense for Gasson Company for the month of June was: