1. Neelon Corporation has two divisions: Southern Division andNorthern Division. The following data are for the most recentoperating period:
sales | total company 341700 | souther division 212300 | northern division 129400 |
| variable expense | 118766 | 72182 | 46584 |
| traceble fixed expenses | 168400 | 70300 | 98100 |
| common fixed expense | 68340 | 42460 | 25880 |
The common fixed expenses have been allocated to the divisionson the basis of sales.
The Northern Division’s break-even sales is closest to:
2. Data for January for Bondi Corporation and its twomajor business segments, North and South, appearbelow:
Sales revenues, North $ 640,000
Variable expenses, North $ 371,300
Traceable fixed expenses, North $ 76,500
Sales revenues, South $ 493,900 Variable expenses, South$ 281,800
Traceable fixed expenses, South $ 63,900
In addition, common fixed expenses totaled $173,300 andwere allocated as follows: $90,000 to the North business segmentand $83,300 to the South business segment. A properly constructedsegmented income statement in a contribution format would show thatthe segment margin of the North business segment is:
3. A manufacturing company that produces a singleproduct has provided the following data concerning its most recentmonth of operations:
Selling price $ 140
Units in beginning inventory 0
Units produced 3,150
Units sold 2,760
Units in ending inventory 390
Variable costs per unit:
Direct materials $ 47
Direct labor $ 18
Variable manufacturing overhead $ 10
Variable selling and administrative expense $19
Fixed costs:
Fixed manufacturing overhead $ 107,100
Fixed selling and administrative expense $24,840
The total gross margin for the month under absorptioncosting is:
4. Farris Corporation, which has only one product, has providedthe following data concerning its most recent month ofoperations:
Selling price $ 116
Units in beginning inventory 0
Units produced 9,000
Units sold 8,600
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 19
Direct labor $ 61
Variable manufacturing overhead $ 7
Variable selling and administrative expense $ 11
Fixed costs:
Fixed manufacturing overhead $ 135,000
Fixed selling and administrative expense $ 8,900
What is the net operating income for the month under absorptioncosting?
5. Aaron Corporation, which has only one product, hasprovided the following data concerning its most recent month ofoperations:
Selling price $ 99
Units in beginning inventory 0
Units produced 4,800
Units sold 4,030
Units in ending inventory 770
Variable costs per unit:
Direct materials $ 20
Direct labor $ 40
Variable manufacturing overhead $ 6
Variable selling and administrative expense $4
Fixed costs:
Fixed manufacturing overhead $ 54,900
Fixed selling and administrative expense $3,500
The total contribution margin for the month undervariable costing is:
