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228.
Data for March concerning Mauger Corporation’s two major business segments-Fibers
and Feedstocks-appear below:
Sales revenues, Fibers
$560,000
Sales revenues, Feedstocks
$810,000
Variable expenses, Fibers
$235,000
Variable expenses, Feedstocks
$348,000
Traceable fixed expenses, Fibers
$90,000
Traceable fixed expenses, Feedstocks
$113,000
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
Net operating income
Common fixed expenses totaled $461,000 and were allocated as follows: $249,000 to the
Fibers business segment and $212,000 to the Feedstocks business segment.
Required:
229.
Errera Corporation has two major business segments-Retail and Wholesale. In July, the
Retail business segment had sales revenues of $100,000, variable expenses of $54,000,
and traceable fixed expenses of $16,000. During the same month, the Wholesale business
segment had sales revenues of $920,000, variable expenses of $386,000, and traceable
fixed expenses of $156,000. Common fixed expenses totaled $269,000 and were allocated
as follows: $156,000 to the Retail business segment and $113,000 to the Wholesale
business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit
percentages; show only dollar amounts.
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230.
The Los Angeles Division of Awercamp Manufacturing produces and markets two product
lines: Racquets and Gloves. The following data were gathered on activities last month:
Racquets
Gloves
Sales in units
1,000
5,000
Selling price per unit
$100
$40
Variable production costs per unit
$20
$8
Traceable fixed production costs
$20,000
$37,000
Variable selling expenses per unit
$11
$2
Traceable fixed selling expenses
$10,000
$23,000
Allocated division administrative expenses
$6,000
$24,000
Contribution margin
69,000
150,000
Traceable fixed production costs
20,000
Traceable fixed selling expenses
Segment margin
Common fixed expenses
Net operating income
Required:
Prepare a segmented income statement for last month.
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231.
Walkenhorst Corporation has two divisions: Bulb Division and Seed Division. The following
report is for the most recent operating period:
Bulb
Division
Seed
Division
Sales
$179,000
$202,000
Variable expenses
$102,030
$84,840
Traceable fixed expenses
$53,000
$73,000
Common fixed expense
$34,010
$38,380
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expense
Net operating income
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Bulb Division’s break-even in sales dollars?
b. What is the Seed Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
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232.
Minick Corporation has two divisions: Grocery Division and Convenience Division. The
following report is for the most recent operating period:
Total Company
Grocery Division
Convenience Division
Sales
$572,000
$222,000
$350,000
Variable expenses
178,940
59,940
119,000
Contribution margin
393,060
162,060
231,000
Traceable fixed expenses
252,000
98,000
154,000
Segment margin
141,060
64,060
77,000
Common fixed expense
91,520
35,520
56,000
Net operating income
$49,540
$28,540
$21,000
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Grocery Division’s break-even in sales dollars?
b. What is the Convenience Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
d. What would be the company’s overall net operating income if the company operated at
its two division’s break-even points?
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6-505
233.
Monce Corporation has two divisions: Home Division and Commercial Division. The
following report is for the most recent operating period:
Total Company
Home Division
Commercial Division
Sales
$700,000
$324,000
$376,000
Variable expenses
$303,200
$149,040
$154,160
Traceable fixed expenses
$265,000
$106,000
$159,000
Common fixed expense
$70,000
$32,400
$37,600
Sales
$700,000
$324,000
$376,000
Variable expenses
Contribution margin
396,800
174,960
Traceable fixed expenses
Segment margin
131,800
Common fixed expense
Net operating income
The common fixed expenses have been allocated to the divisions on the basis of sales.
Required:
a. What is the Home Division’s break-even in sales dollars?
b. What is the Commercial Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
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234.
Peals Corporation has two divisions: Home Division and Commercial Division. The
following report is for the most recent operating period:
Total Company
Home Division
Commercial Division
Sales
$696,000
$365,000
$331,000
Variable expenses
$230,700
$131,400
$99,300
Traceable fixed expenses
$296,000
$152,000
$144,000
Total Company
Home Division
Commercial Division
Sales
$696,000
$365,000
$331,000
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expense
Net operating income
The company’s common fixed expenses total $125,280.
Required:
a. What is the Home Division’s break-even in sales dollars?
b. What is the Commercial Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
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235.
Propst Corporation has two divisions: Garden Division and Farm Division. The following
report is for the most recent operating period:
Total
Company
Garden
Division
Farm
Division
Sales
$390,000
$270,000
$120,000
Variable
expenses
95,400
59,400
36,000
Contribution
margin
294,600
210,600
84,000
Traceable fixed
expenses
223,000
165,000
58,000
Segment margin
71,600
$45,600
$26,000
Common fixed
expense
46,800
Net operating
income
$24,800
Required:
a. What is the Garden Division’s break-even in sales dollars?
b. What is the Farm Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
d. What would be the company’s overall net operating income if the company operated at
its two division’s break-even points?
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236.
Roskos Corporation has two divisions: Town Division and Country Division. The following
report is for the most recent operating period:
Town
Division
Country
Division
Sales
$278,000
$251,000
Variable expenses
$150,120
$128,010
Traceable fixed expenses
$91,000
$92,000
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expense
Net operating income
The company’s common fixed expenses total $52,900.
Required:
a. What is the Town Division’s break-even in sales dollars?
b. What is the Country Division’s break-even in sales dollars?
c. What is the company’s overall break-even in sales dollars?
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