71.
Insider Corporation has two divisions, J and K. During March, the contribution margin in
Division J was $30,000. The contribution margin ratio in Division K was 40%, its sales were
$125,000, and its segment margin was $32,000. The common fixed expenses in the
company were $40,000, and the company’s net operating income was $18,000. The
segment margin for Division J was:
6-240
72.
Sorto Corporation has two divisions: the East Division and the West Division. The
corporation’s net operating income is $93,200. The East Division’s divisional segment
margin is $223,200 and the West Division’s divisional segment margin is $15,900. What is
the amount of the common fixed expense not traceable to the individual divisions?
6-241
73.
Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The
Alpha Division has sales of $230,000, variable expenses of $131,100, and traceable fixed
expenses of $63,300. The Charlie Division has sales of $540,000, variable expenses of
$307,800, and traceable fixed expenses of $120,700. The total amount of common fixed
expenses not traceable to the individual divisions is $119,200. What is the company’s net
operating income?
6-242
74.
Channing Corporation has two divisions, C and D. The overall company contribution
margin ratio is 30%, with sales in the two divisions totaling $750,000. If variable expenses
are $450,000 in Division C and if Division C’s contribution margin ratio is 25%, then sales
in Division D must be:
6-243
6-244
75.
DC Construction has two divisions: Remodeling and New Home Construction. Each
division has an on-site supervisor who is paid a salary of $62,000 annually and one
salaried estimator who is paid $36,000 annually. The corporate office has two office
administrative assistants who are paid salaries of $40,000 and $32,000 annually. The
president’s salary is $138,000. How much of these salaries are common fixed expenses?
6-245
6-246
76.
Sturr Market has 3 stores: P, Q, and R. During October, Store P had a contribution margin
of $24,000 and a contribution margin ratio of 30%. Store Q had variable expenses of
$48,000 and a contribution margin ratio of 40%. Store R had variable expenses of $84,000
and a variable expense ratio of 70% of sales. Sturr Market’s total sales were:
6-247
6-248
77.
Carrejo Corporation has two divisions: Division M and Division N. Data from the most
recent month appear below:
Total
Company
Division
M
Division
N
Sales
$404,000
$181,000
$223,000
Variable
expenses
152,130
65,160
86,970
Contribution
margin
251,870
115,840
136,030
Traceable fixed
expenses
192,000
87,000
105,000
Segment
margin
59,870
28,840
31,030
Common fixed
expenses
52,520
23,530
28,990
Net operating
income
$7,350
$5,310
$2,040
Management has allocated common fixed expenses to the Divisions based on their sales.
The break-even in sales dollars for Division N is closest to:
6-250
78.
Gough Corporation has two divisions: Domestic and Foreign. Data from the most recent
month appear below:
Total
Company
Domestic
Foreign
Sales
$668,000
$347,000
$321,000
Variable
expenses
220,530
72,870
147,660
Contribution
margin
447,470
274,130
173,340
Traceable fixed
expenses
335,000
201,000
134,000
Segment
margin
112,470
$73,130
$39,340
Common fixed
expenses
73,480
Net operating
income
$38,990
The break-even in sales dollars for the company as a whole is closest to:
6-252
6-253
79.
Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month
appear below:
Xi
Sigma
Sales
$286,000
$148,000
Variable expenses
$157,300
$62,160
Traceable fixed expenses
$84,000
$56,000
Sales
$286,000
$148,000
Segment margin
The company’s common fixed expenses total $65,100. The break-even in sales dollars for
Sigma Division is closest to:
6-254
6-255
80.
Muhn Corporation has two divisions: Division K and Division L. Data from the most recent
month appear below:
Total Company
Division K
Division L
Sales
$409,000
$248,000
$161,000
Variable expenses
216,770
131,440
85,330
Contribution margin
192,230
116,560
75,670
Traceable fixed expenses
133,000
75,000
58,000
Segment margin
59,230
41,560
17,670
Common fixed expenses
40,900
24,800
16,100
Net operating income
$18,330
$16,760
$1,570
Management has allocated common fixed expenses to the Divisions based on their sales.
The break-even in sales dollars for Division K is closest to:
81.
Hogans Corporation has two divisions: Delta and Echo. Data from the most recent month
appear below:
Delta
Echo
Sales
$156,000
$221,000
Variable expenses
$49,920
$112,710
Traceable fixed expenses
$71,000
$85,000
The company’s common fixed expenses total $64,090. The break-even in sales dollars for
Echo Division is closest to:
82.
Warburton Corporation has two divisions: Alpha and Beta. Data from the most recent
month appear below:
Alpha
Beta
Sales
$222,000
$229,000
Variable expenses
$51,060
$66,410
Traceable fixed expenses
$125,000
$100,000
The company’s common fixed expenses total $85,690. The break-even in sales dollars for
Alpha Division is closest to:
83.
Carolfi Corporation has two divisions: Division A and Division B. Data from the most recent
month appear below:
Total
Company
Division
A
Division
B
Sales
$724,000
$370,000
$354,000
Variable
expenses
327,880
214,600
113,280
Contribution
margin
396,120
155,400
240,720
Traceable fixed
expenses
255,000
97,000
158,000
Segment
margin
141,120
$58,400
$82,720
Common fixed
expenses
130,320
Net operating
income
$10,800
The break-even in sales dollars for Division A is closest to: