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74) Last year, Tinklenberg Corporation's variable costing net operating income was $52,400 and
its inventory decreased by 1,400 units. Fixed manufacturing overhead cost was $8 per unit for
both units in beginning and in ending inventory. What was the absorption costing net operating
income last year?
A) $41,200
B) $11,200
C) $63,600
D) $52,400
75) Sipho Corporation manufactures a single product. Last year, the company's variable costing
net operating income was $90,900. Fixed manufacturing overhead costs released from inventory
under absorption costing amounted to $21,900. What was the absorption costing net operating
income last year?
A) $69,000
B) $90,900
C) $21,900
D) $112,800
76) Truo Corporation produces a single product. Last year, the company had net operating
income of $100,000 using variable costing. Beginning and ending inventories were 13,000 units
and 18,000 units, respectively. If the fixed manufacturing overhead cost was $4 per unit both last
year and this year, what would have been the net operating income using absorption costing?
A) $80,000
B) $100,000
C) $120,000
D) $172,000
77) Corbel Corporation has two divisions: Division A and Division B. Last month, the company
reported a contribution margin of $60,000 for Division A. Division B had a contribution margin
ratio of 40% and its sales were $300,000. Net operating income for the company was $40,000
and traceable fixed expenses were $80,000. Corbel Corporation's common fixed expenses were:
A) $140,000
B) $60,000
C) $100,000
D) $80,000
78) Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The
Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed
expenses of $186,500. The Alpha Division has sales of $510,000, variable expenses of
$178,500, and traceable fixed expenses of $222,100. The total amount of common fixed
expenses not traceable to the individual divisions is $235,500. What is the company's net
operating income?
A) $374,400
B) $201,300
C) $609,900
D) ($34,200)
79) Younie Corporation has two divisions: the South Division and the West Division. The
corporation's net operating income is $26,900. The South Division's divisional segment margin is
$42,800 and the West Division's divisional segment margin is $29,900. What is the amount of
the common fixed expense not traceable to the individual divisions?
A) $56,800
B) $69,700
C) $72,700
D) $45,800
80) Carroll Corporation has two products, Q and P. During June, the company's net operating
income was $25,000, and the common fixed expenses were $37,000. The contribution margin
ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000. If
the contribution margin for Product P was $80,000, the segment margin for Product P was:
A) $62,000
B) $59,000
C) $37,000
D) $41,000
81) J Corporation has two divisions. Division A has a contribution margin of $79,300 and
Division B has a contribution margin of $126,200. If total traceable fixed expenses are $72,400
and total common fixed expenses are $34,900, what is J Corporation's net operating income?
A) $168,000
B) $170,600
C) $133,100
D) $98,200
82) Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The
corporation's net operating income is $42,000. The AFE Division's divisional segment margin is
$15,700 and the GBI Division's divisional segment margin is $175,400. What is the amount of
the common fixed expense not traceable to the individual divisions?
A) $149,100
B) $57,700
C) $217,400
D) $191,100
83) Chang Corporation has two divisions, T and W. The company's overall contribution margin
ratio is 40%, with sales in the two divisions totaling $900,000. If variable expenses are $200,000
in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must
be:
A) $200,000
B) $425,000
C) $700,000
D) $340,000
84) Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated
net operating income of $40,000. The following information was taken from last year's income
statement segmented by flavor (brackets indicate a negative amount):
Wimpy
Mild
Medium
Hot
Atomic
Contribution
margin
$
(2,000
)
$
45,000
$
35,000
$
50,000
$
162,000
Segment margin
$
(16,000
)
$
(5,000
)
$
7,000
$
10,000
$
94,000
Allocated
common fixed
expenses
$
10,000
$
10,000
$
10,000
$
10,000
$
10,000
Segment margin
less allocated
common fixed
expenses
$
(26,000
)
$
(15,000
)
$
(3,000
)
$
0
$
84,000
Toxemia expects similar operating results for the upcoming year. If Toxemia wants to maximize
its profitability in the upcoming year, which flavor or flavors should Toxemia discontinue?
A) no flavors should be discontinued
B) Wimpy
C) Wimpy and Mild
D) Wimpy, Mild, and Medium
85) Dukelow Corporation has two divisions: the Governmental Products Division and the Export
Products Division. The Governmental Products Division's divisional segment margin is
$255,000 and the Export Products Division's divisional segment margin is $59,800. The total
amount of common fixed expenses not traceable to the individual divisions is $163,700. What is
the company's net operating income?
A) $314,800
B) ($314,800)
C) $151,100
D) $478,500
86) Eyestone Corporation has two divisions, A and B. The following data pertain to operations in
October:
Division A
Division B
Sales
$
80,000
$
170,000
Variable expenses as a percentage of sales
60
%
80
%
Segment margin
$
10,000
$
25,000
A) $48,000
B) $13,000
C) $31,000
D) $53,000
87) Gulinson Corporation has two divisions: Division A and Division B. Data from the most
recent month appear below:
Total
Company
Division A
Division B
Sales
$
591,000
$
222,000
$
369,000
Variable expenses
275,580
113,220
162,360
Contribution margin
315,420
108,780
206,640
Traceable fixed expenses
195,000
66,000
129,000
Segment margin
120,420
$
42,780
$
77,640
Common fixed expenses
65,010
Net operating income
$
55,410
The break-even in sales dollars for Division A is closest to:
A) $134,694
B) $184,531
C) $487,179
D) $267,367
88) Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month
appear below:
Alpha
Beta
Sales
$
190,000
$
315,000
Variable expenses
$
58,900
$
151,200
Traceable fixed expenses
$
99,000
$
107,000
The company's common fixed expenses total $80,800. The break-even in sales dollars for Alpha
Division is closest to:
A) $491,129
B) $143,478
C) $187,536
D) $260,580
