p6-5b - Name: Date: Instructor: Course: Managerial...

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FileName: a6c73e2d71468d86571bf214b32c965e924d286c.xls, Tab: Problem P6-5B, Page 1 of 2, 12/28/2011, 19:02:13 Name: Date: Instructor: Course: aggregate income from operations of $36,000 and the following divisional results: Divisions Taos Boseman Salem Olympia Sales $405,000 $730,000 $920,000 $500,000 Cost of goods sold 400,000 480,000 576,000 390,000 Selling and Admin Expenses 100,000 207,000 246,000 120,000 Income (Loss) from operations ($95,000) $43,000 $98,000 ($10,000) Analysis reveals the following percentages of variable costs in each division. Taos Boseman Salem Olympia Cost of goods sold 90% 80% 90% 95% Selling and Admin Expenses 60% 60% 70% 80% Discontinuance of any division would save 70% of the fixed costs and expenses for that division. Instructions: Taos Boseman 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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p6-5b - Name: Date: Instructor: Course: Managerial...

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