Answer Q4 , thank you

margia ratio has con EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis sales by major market are: Market Minneapolis Dental P Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets.... Office segment margin 52 $300,000 180,000 120.000 33,000 87,000 15,000 $ 72.000 Chicago $200,000 100% 128,000 64% 72,000 36% 12,000 6% $ 60,000 30% 100% 60% 40% 11% 29% 5% 24% $100,000 100% 52.000 48,000 48 21,000 21% $ 27,000 27 The company would like to initiate an intensive advertising campaign in one of the two market segment during the next month. The campaign would cost $5.000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35.00 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Variable Costing and Segment Reporting: Tools for Management Required: 2. 3. 4. in which of the markets would you recommend that the company focus its advertising campaign In Exercise 7-16. Minneapolis shows $48,000 in traceable fixed expenses. What happened to the $48,000 in this exercise? flow 1 cam H camy + 548 Once yearing PROB LO7- Haas C 30% ETA Uncome Statement EXERCHE Www Senter Statement Breve Ary 1- Charmesystems to me cins Chagalog Motherca ng Afrodice 1. Compute the company wide break-even point in dollar ales. Also, compute the break-even the Chicapo office and for the Mimeapolis office. Is the companywide break-even point 2. By how much would the company's operating income increase if Minneapolis increased 3. Refer to the original data. Assume that sales in Chicago increase by S50,000 next year and that Prepare a segmented income statement for the company using the above format. Show to 20 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common feed expenses not traceable to offices Net operating income Required amounts and percentages. Total Company $450.000 TOON 225.000 50 225.000 SON 125.000 284 99.000 22 68,000 145 $36.000 8 Chicago $150,000 100% 45.000 105,000 78.000 $ 27.000 7016 $200.000 180.000 120.000 48.000 $ 22.000 526 18% less than or equal to the son of the Chicago and Minneapolis break-even points? Why: by $75.000 per year Assume to change in cost behavior patterns. in Minneapolis remain unchanged. Assume no change in fixed costs. Observe from the income statement you have prepared that the contribution margin taloss margin ratio has changed. How do you explain the change in the segment margin ratio? EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis' sales by major market are: Market Chicago Dental Sales Variable expenses.. Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets.... Office segment margin Minneapolis $300,000 100% 180,000 60% 120,000 40% 33,000 11% 87.000 29% 15.000 5% $ 72.000 24% $200,000 128,000 72000 0 S609200 100% 64% 36% 6% 30% $100,000 100% 52,000 52 48.000 48% 21.000 21% $ 27.000 273 The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by S40.000 or increase sales in the Dental market by $35.000 with Rin uch of the I SOOO the I Cote the company wide raven point in de los Al compute the ben por the Chicago office for the Minapolis office. In the company wide break even point 2 By how much would the company operating income if Minneapolis was Refer to the originaldate Author sale in Chicago increase by 550.000 next year and the . Prepare a new remenied income for the company in the above for Shibh Chicago lus remained unchanged at 7016 the same as in the above data but that these Sa Daca expenses O segmentare Common experientable to office Nefperating in eguire 3 ats and percentages PROBLEM Compare LOT-2 5300 DOO roos 100 30 70 52 $150.000 OD 100 000 78.000 522000 HO 225.000 225.000 120.000 000 2000 138.000 son 20 2015 120.000 A1 A 12 000 Durid year per year Acume in cost behavior in Minneapolis pemain unchanged. Asume no change in fixed costs, Red 1 2. margin ratio has changed. How do you explain the change in the segment margin to EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis' sales by major market are Market Minneapolis Chicago Dental des able expenses ribution margin able feed expenses segment margin en fried expenses not traceable to markets. egment margin $300,000 100% 180,000 60% 120,000 40% 33.000 119 87.000 29% 15,000 5% $ 72.000 24% $200,000 128,000 72.000 12,000 $ 50 000 100% 645 36% 6% 30% $100.000 1001 52.000 52 48.000 48 21.000 21 $ 27.000 27 The company would like to initiate an intensive advertising campaign is one of the two market som during the next month. The campaign would cost $5,000, Marketing studies indicate that such a cap would increase sales in the Medical market by S40,000 or increase sales in the Dental market by 535.000 margia ratio has con EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis sales by major market are: Market Minneapolis Dental P Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets.... Office segment margin 52 $300,000 180,000 120.000 33,000 87,000 15,000 $ 72.000 Chicago $200,000 100% 128,000 64% 72,000 36% 12,000 6% $ 60,000 30% 100% 60% 40% 11% 29% 5% 24% $100,000 100% 52.000 48,000 48 21,000 21% $ 27,000 27 The company would like to initiate an intensive advertising campaign in one of the two market segment during the next month. The campaign would cost $5.000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35.00 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Variable Costing and Segment Reporting: Tools for Management Required: 2. 3. 4. in which of the markets would you recommend that the company focus its advertising campaign In Exercise 7-16. Minneapolis shows $48,000 in traceable fixed expenses. What happened to the $48,000 in this exercise? flow 1 cam H camy + 548 Once yearing PROB LO7- Haas C 30% ETA Uncome Statement EXERCHE Www Senter Statement Breve Ary 1- Charmesystems to me cins Chagalog Motherca ng Afrodice 1. Compute the company wide break-even point in dollar ales. Also, compute the break-even the Chicapo office and for the Mimeapolis office. Is the companywide break-even point 2. By how much would the company's operating income increase if Minneapolis increased 3. Refer to the original data. Assume that sales in Chicago increase by S50,000 next year and that Prepare a segmented income statement for the company using the above format. Show to 20 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common feed expenses not traceable to offices Net operating income Required amounts and percentages. Total Company $450.000 TOON 225.000 50 225.000 SON 125.000 284 99.000 22 68,000 145 $36.000 8 Chicago $150,000 100% 45.000 105,000 78.000 $ 27.000 7016 $200.000 180.000 120.000 48.000 $ 22.000 526 18% less than or equal to the son of the Chicago and Minneapolis break-even points? Why: by $75.000 per year Assume to change in cost behavior patterns. in Minneapolis remain unchanged. Assume no change in fixed costs. Observe from the income statement you have prepared that the contribution margin taloss margin ratio has changed. How do you explain the change in the segment margin ratio? EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis' sales by major market are: Market Chicago Dental Sales Variable expenses.. Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets.... Office segment margin Minneapolis $300,000 100% 180,000 60% 120,000 40% 33,000 11% 87.000 29% 15.000 5% $ 72.000 24% $200,000 128,000 72000 0 S609200 100% 64% 36% 6% 30% $100,000 100% 52,000 52 48.000 48% 21.000 21% $ 27.000 273 The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by S40.000 or increase sales in the Dental market by $35.000 with Rin uch of the I SOOO the I Cote the company wide raven point in de los Al compute the ben por the Chicago office for the Minapolis office. In the company wide break even point 2 By how much would the company operating income if Minneapolis was Refer to the originaldate Author sale in Chicago increase by 550.000 next year and the . Prepare a new remenied income for the company in the above for Shibh Chicago lus remained unchanged at 7016 the same as in the above data but that these Sa Daca expenses O segmentare Common experientable to office Nefperating in eguire 3 ats and percentages PROBLEM Compare LOT-2 5300 DOO roos 100 30 70 52 $150.000 OD 100 000 78.000 522000 HO 225.000 225.000 120.000 000 2000 138.000 son 20 2015 120.000 A1 A 12 000 Durid year per year Acume in cost behavior in Minneapolis pemain unchanged. Asume no change in fixed costs, Red 1 2. margin ratio has changed. How do you explain the change in the segment margin to EXERCISE 7-17 Working with a Segmented Income Statement L07-4 Refer to the data in Exercise 7-16. Assume that Minneapolis' sales by major market are Market Minneapolis Chicago Dental des able expenses ribution margin able feed expenses segment margin en fried expenses not traceable to markets. egment margin $300,000 100% 180,000 60% 120,000 40% 33.000 119 87.000 29% 15,000 5% $ 72.000 24% $200,000 128,000 72.000 12,000 $ 50 000 100% 645 36% 6% 30% $100.000 1001 52.000 52 48.000 48 21.000 21 $ 27.000 27 The company would like to initiate an intensive advertising campaign is one of the two market som during the next month. The campaign would cost $5,000, Marketing studies indicate that such a cap would increase sales in the Medical market by S40,000 or increase sales in the Dental market by 535.000