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164. The product line segment margin for Product A for June was:
5-162
165. The contribution margin in dollars for Product B for June was:
Tennison Corporation has two major business segments-Consumer and Commercial. Data
for the segment and for the company for May appear below:
In addition, common fixed expenses totaled $371,000 and were allocated as follows: $186,000 to
the Consumer business segment and $185,000 to the Commercial business segment.
166. The contribution margin of the Commercial business segment is:
167. A properly constructed segmented income statement in a contribution format would show
that the segment margin of the Consumer business segment is:
5-165
168. A properly constructed segmented income statement in a contribution format would show
that the net operating income of the company as a whole is:
Stryker Corporation has two major business segments-East and West. In April, the East
business segment had sales revenues of $500,000, variable expenses of $280,000, and traceable
fixed expenses of $80,000. During the same month, the West business segment had sales
revenues of $970,000, variable expenses of $514,000, and traceable fixed expenses of $184,000.
The common fixed expenses totaled $280,000 and were allocated as follows: $112,000 to the
East business segment and $168,000 to the West business segment.
169. The contribution margin of the West business segment is:
170. A properly constructed segmented income statement in a contribution format would show
that the segment margin of the East business segment is:
171. A properly constructed segmented income statement in a contribution format would show
that the net operating income of the company as a whole is:
Canon Company has two sales areas: North and South. During last year, the contribution
margin in the North Area was $50,000, or 20% of sales. The segment margin in the South was
$15,000, or 8% of sales. Traceable fixed expenses are $15,000 in the North and $10,000 in the
South. During last year, the company reported total net operating income of $26,000.
172. The total fixed expenses (traceable and common) for Canon Company for the year were:
5-169
173. The variable expenses for the South Area for the year were:
Data for June for Ozaki Corporation and its two major business segments, North and
South, appear below:
In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to
the North business segment and $72,000 to the South business segment.
174. The contribution margin of the South business segment is:
175. A properly constructed segmented income statement in a contribution format would show
that the segment margin of the North business segment is:
5-174
176. A properly constructed segmented income statement in a contribution format would show
that the net operating income of the company as a whole is:
Falquez Company sells three products: R, S, and T. Data for activity of Falquez Company
during July are as follows:
Common fixed expenses for July amounted to $90,000.
177. Net operating income for the company was:
178. The contribution margin for Product R was:
5-176
179. The segment margin for Product T was:
5-178
180. The EG Company produces and sells one product. The following data refer to the year
just completed:
Assume that direct labor is a variable cost.
Required:
a. Compute the cost of a single unit of product under both the absorption costing and variable
costing approaches.
b. Prepare an income statement for the year using absorption costing.
c. Prepare a contribution format income statement for the year using variable costing.
d. Reconcile the absorption costing and variable costing net operating income figures in (b) and
(c) above.
5-180
181. Maga Company, which has only one product, has provided the following data concerning
its most recent month of operations:
Required:
a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare a contribution format income statement for the month using variable costing.
d. Prepare an income statement for the month using absorption costing.
e. Reconcile the variable costing and absorption costing net operating incomes for the month.
