p6-5a - Name: Instructor: Managerial Accounting, 3rd...

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FileName: edbd7bf522c642a8b778a885bc755aaecdb415fe.xls, Tab: Problem P6-5A, Page 1 of 2, 12/28/2011, 19:02:07 Name: Date: Instructor: Course: aggregate income from operations of \$176,000 and the following divisional results: Divisions I II III IV Sales \$250,000 \$200,000 \$500,000 \$400,000 Cost of goods sold 200,000 189,000 300,000 250,000 Selling and Admin Expenses 65,000 60,000 60,000 50,000 Income (Loss) from operations (\$15,000) (\$49,000) \$140,000 \$100,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 70% 90% 80% 75% Selling and Admin Expenses 40% 70% 50% 60% Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Instructions: Division I Division II Sales Amount Amount Variable costs Title Formula Formula Title Formula Formula Total variable expenses Formula Formula Title Formula Formula Continue Eliminate Contribution margin (above) Amount Amount Formula Fixed costs Title Formula Formula Formula Title Formula Formula Formula Total fixed expenses Formula Formula Formula Title Formula Formula Formula Continue Eliminate Contribution margin Amount Amount Formula Fixed costs Title Formula Formula Formula Title Formula Formula Formula Total fixed expenses Formula Formula Formula Title Formula

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This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

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p6-5a - Name: Instructor: Managerial Accounting, 3rd...

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