What does a consistently negative responsibility margin imply will happen to the operating income of the business if the center is closed? Why? Identify several other factors that should be considered in deciding whether or not to close the center.
Answer to relevant QuestionsBriefly explain the distinction between controllable fixed costs and committed fixed costs. Also explain the nature and purpose of performance margin in a responsibility income statement. Porcus Corporation manufactures and sells bicycles. The Wheel & Frame Division creates parts that are both sold externally and transferred internally to the Assembly Division for assembly. Wheel #606 sells externally for $35 ...The controller of Maxwell Department Store is preparing an income statement divided by sales departments and including subtotals for contribution margin, performance margin, and responsibility margin. Indicate the ...Cristina’s Crafts has two operating divisions: one in the U.S. and one in Mexico. The Mexican Division produces product X, which is a component used in the production process of the U.S. Division. If the U.S. Division ...Rhinesch Corporation has two divisions: the Motor Division and the Pump Division. The Motor Division supplies the motors used by the Pump Division. The Pump Division produces approximately 10,000 pumps annually. Thus, it ...
Post your question