58common expenses are 12000 for 1995 what is the

58.Common expenses are $12,000 for 1995. What is the segment
margin for Division B? (E)
H & M
Nauman Comp any has the following information pertaining to its two divisions for 1995:
Division X Division Y
Variable selling & administrative
expenses
$ 70,000 $ 90,000
Direct fixed manufacturing
expenses
35,000 100,000
Sales 200,000 400,000
Direct fixed selling/admin.
expenses
30,000 70,000
a. $155,000 d. $20,000
b. $105,000 e. $8,000
c. $55,000
59.What is the net income for the Barmore Company? (E)
Questions 60 & 61 are based on the following information. G & N 9e
Canon Company has two sales areas: North and South. During last
year, the contribution margin in the North Area was $50,000, or 20% of
sales. The segment margin in the South was $15,000, or 8% of sales.
Traceable fixed costs are $15,000 in the North and $10,000 in the
South. During last year, the company reported total net income of
$26,000.
60.The variable costs for the South Area for the year were: (M)
61.The total fixed costs (traceable and common) for Canon Company
for the year were: (M)
Questions 62 thru 64 are based on the following information. H & M
Nauman Comp any has the following information pertaining to its two divisions for 1995:
Division X Division Y
Variable selling & administrative
expenses
$ 70,000 $ 90,000
Direct fixed manufacturing
expenses
35,000 100,000
Sales 200,000 400,000
Direct fixed selling/admin.
expenses
30,000 70,000
Variable manufacturing expenses 40,000 100,000
Common expenses are $24,000 for 1995.
62.What is the net income for the Nauman Company? (E)
a. $600,000 d. $65,000
b. $325,000 e. $41,000
c. $300,000
63.What is the segment margin for Division X? (E)
CHIANG KAI SHEK COLLEGE Page 11 of 32

MANAGEMENT ADVISORY SERVICES Responsibility Accounting & Transfer Pricing
64.What is the segment margin for Division Y? (E) Sales revenue $2,000,0
00
$800,00
0
$700,00
0
$500,00
0
Costs & expenses:
Administrative $
180,000
$ 60,000 $ 60,000 $ 60,000
Questions 65 thru 68 are based on the following information. G & N 9e
Ieso Company has two stores: J and K. During November, Ieso
Company reported a net income of $30,000 and sales of $450,000. The
contribution margin in Store J was $100,000, or 40% of sales. The
segment margin in Store K was $30,000, or 15% of sales. Traceable
fixed expenses are $60,000 in Store J, and $40,000 in Store K.
65.Sales in Store J totaled: (M)
Advertising 240,000 96,000 84,000 60,000
Commissions 40,000 16,000 14,000 10,000
Cost of sales 980,000 360,000 420,000 200,000
Rent 280,000 84,000 140,000 56,000
Salaries 110,000 54,000 32,000 24,000
Total costs &
expenses
$1,830,0
00
$670,00
0
$750,00
0
$410,00
0
Operating income
(loss)
$
170,000
$130,00
0
$(50,000
)
$ 90,000
The company buys the goods in the three product lines directly from
66. Variable expenses in Store K totaled: (M)
manufacturers' representatives. Each product line is directed by a
manager whose salary is included in the administrative expenses.
Administrative expenses are allocated to the three product lines
equally because the administration is spread evenly among the three
a. $70,000. c. $200,000.
b. $110,000. d . $130,000.
67.The segment margin ratio in Store J was: (M)
product lines. Salaries represent payments to the workers in each
product line and therefore are traceable costs of each product line.
68.Ieso Company's total fixed expenses for the year were: (M) Sensitivity Analysis
Questions 69 through 72 are based on the following information. CIA
1196 III-97 to 100
The segmented income statement for a retail company with three product lines is
presented below:
Total
Compan
y
Product
Line 1
Product
Line 2
Product
Line 3
Volume (in units) 20,000 28,000 50,000