189. Keefe Corporation has two divisions: Western Division and Eastern Division. The
following report is for the most recent operating period:
Total Company Western Division Eastern Division
Sales $396,000 $276,000 $120,000
Variable expenses 150,600 124,200 26,400
Contribution margin 245,400 151,800 93,600
Traceable fixed expenses 153,000 94,000 59,000
Segment margin 92,400 57,800 34,600
Common fixed expense 75,240 52,440 22,800
Net operating income $17,160 $5,360 $11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Western Division’s break-even sales is closest to:
190. Keefe Corporation has two divisions: Western Division and Eastern Division. The
following report is for the most recent operating period:
Total Company Western Division Eastern Division
Sales $396,000 $276,000 $120,000
Variable expenses 150,600 124,200 26,400
Contribution margin 245,400 151,800 93,600
Traceable fixed expenses 153,000 94,000 59,000
Segment margin 92,400 57,800 34,600
Common fixed expense 75,240 52,440 22,800
Net operating income $17,160 $5,360 $11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Eastern Division’s break-even sales is closest to:
191. Keefe Corporation has two divisions: Western Division and Eastern Division. The
following report is for the most recent operating period:
Total Company Western Division Eastern Division
Sales $396,000 $276,000 $120,000
Variable expenses 150,600 124,200 26,400
Contribution margin 245,400 151,800 93,600
Traceable fixed expenses 153,000 94,000 59,000
Segment margin 92,400 57,800 34,600
Common fixed expense 75,240 52,440 22,800
Net operating income $17,160 $5,360 $11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
The company’s overall break-even sales is closest to:
192. Keefe Corporation has two divisions: Western Division and Eastern Division. The
following report is for the most recent operating period:
Total Company Western Division Eastern Division
Sales $396,000 $276,000 $120,000
Variable expenses 150,600 124,200 26,400
Contribution margin 245,400 151,800 93,600
Traceable fixed expenses 153,000 94,000 59,000
Segment margin 92,400 57,800 34,600
Common fixed expense 75,240 52,440 22,800
Net operating income $17,160 $5,360 $11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
What is the company’s overall net operating income if it operates at the break-even points for its
two divisions?
193. Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company Southern
Division Northern Division
Sales $332,000 $200,000 $132,000
Variable expenses $92,400 $66,000 $26,400
Traceable fixed expenses $170,000 $101,000 $69,000
Common fixed expense $36,520 $22,000 $14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Southern Division’s break-even sales is closest to:
194. Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company Southern Division Northern Division
Sales $332,000 $200,000 $132,000
Variable expenses $92,400 $66,000 $26,400
Traceable fixed expenses $170,000 $101,000 $69,000
Common fixed expense $36,520 $22,000 $14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Northern Division’s break-even sales is closest to:
195. Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company Southern
Division Northern Division
Sales $332,000 $200,000 $132,000
Variable expenses $92,400 $66,000 $26,400
Traceable fixed expenses $170,000 $101,000 $69,000
Common fixed expense $36,520 $22,000 $14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
The company’s overall break-even sales is closest to:
196. Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company Southern Division Northern Division
Sales $332,000 $200,000 $132,000
Variable expenses $92,400 $66,000 $26,400
Traceable fixed expenses $170,000 $101,000 $69,000
Common fixed expense $36,520 $22,000 $14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
What is the company’s overall net operating income if it operates at the break-even points for its
two divisions?
197. Criblez Corporation has two divisions: Blue Division and Gold Division. The following
report is for the most recent operating period:
Total Company Blue Division Gold Division
Sales $431,000 $106,000 $325,000
Variable expenses 154,810 54,060 100,750
Contribution margin 276,190 51,940 224,250
Traceable fixed expenses 177,000 38,000 139,000
Segment margin 99,190 $13,940 $85,250
Common fixed expense 68,960
Net operating income $30,230
The Blue Division’s break-even sales is closest to:
198. Criblez Corporation has two divisions: Blue Division and Gold Division. The following
report is for the most recent operating period:
Total Company Blue Division Gold Division
Sales $431,000 $106,000 $325,000
Variable expenses 154,810 54,060 100,750
Contribution margin 276,190 51,940 224,250
Traceable fixed expenses 177,000 38,000 139,000
Segment margin 99,190 $13,940 $85,250
Common fixed expense 68,960
Net operating income $30,230
The Gold Division’s break-even sales is closest to:
199. Criblez Corporation has two divisions: Blue Division and Gold Division. The following
report is for the most recent operating period:
Total
Company Blue
Division Gold
Division
Sales $431,000 $106,000 $325,000
Variable expenses 154,810 54,060 100,750
Contribution margin 276,190 51,940 224,250
Traceable fixed expenses 177,000 38,000 139,000
Segment margin 99,190 $13,940 $85,250
Common fixed expense 68,960
Net operating income $30,230
The company’s overall break-even sales is closest to:
200. Criblez Corporation has two divisions: Blue Division and Gold Division. The following
report is for the most recent operating period:
Total Company Blue Division Gold Division
Sales $431,000 $106,000 $325,000
Variable expenses 154,810 54,060 100,750
Contribution margin 276,190 51,940 224,250
Traceable fixed expenses 177,000 38,000 139,000
Segment margin 99,190 $13,940 $85,250
Common fixed expense 68,960
Net operating income $30,230
What is the company’s overall net operating income if it operates at the break-even points for its
two divisions?
201. Phong Corporation has two divisions: Consumer Division and Business Division. The
following data are for the most recent operating period:
Consumer Division Business Division
Sales $267,000 $335,000
Variable expenses $152,190 $73,700
Traceable fixed expenses $72,000 $191,000
The company’s common fixed expenses total $102,340.
The Consumer Division’s break-even sales is closest to:
202. Phong Corporation has two divisions: Consumer Division and Business Division. The
following data are for the most recent operating period:
Consumer Division Business Division
Sales $267,000 $335,000
Variable expenses $152,190 $73,700
Traceable fixed expenses $72,000 $191,000
The company’s common fixed expenses total $102,340.
The Business Division’s break-even sales is closest to:
203. Phong Corporation has two divisions: Consumer Division and Business Division. The
following data are for the most recent operating period:
Consumer Division Business Division
Sales $267,000 $335,000
Variable expenses $152,190 $73,700
Traceable fixed expenses $72,000 $191,000
The company’s common fixed expenses total $102,340.
The company’s overall break-even sales is closest to:
204. Sidell Inc., which produces a single product, has provided the following data for its most
recent month of operation:
Number of units produced 8,000
Variable costs per unit:
Direct materials $34
Direct labor $38
Variable manufacturing overhead $2
Variable selling and administrative expenses $2
Fixed costs:
Fixed manufacturing overhead $576,000
Fixed selling and administrative expenses $312,000
The company had no beginning or ending inventories.
Required:
Compute the unit product cost under absorption costing. Show your work!
205. Ronan Corporation produces a single product and has the following cost structure:
Number of units produced each year 3,000
Variable costs per unit:
Direct materials $77
Direct labor $41
Variable manufacturing overhead $3
Variable selling and administrative expenses $5
Fixed costs per year:
Fixed manufacturing overhead $36,000
Fixed selling and administrative expenses $249,000
Required:
Compute the unit product cost under variable costing. Show your work!