Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as var segmented contribution format income statement for the company's most recent year is given below: Sales 5:11 Variable expenses Contribution margin 3 Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income ces Office Total Company Toronto Vancouver 444,000 55.50 356,000 44.50 129,200 16.15 $800,000 100.0% $120,000 100% $680,000 100% 60 408,000 272,000 40 68,000 10 36,000 30 84,000 70 61,200 51 226,800 28.35 $ 22,800 19% $204,000 30% 102,000 12.75 $124,800 15.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $77,000 per y change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $50,000 next year and that sales in Vanco unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Rou answers to 2 decimal places.) Prev 1 of 4 Next > Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as var segmented contribution format income statement for the company's most recent year is given below: Sales 5:11 Variable expenses Contribution margin 3 Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income ces Office Total Company Toronto Vancouver 444,000 55.50 356,000 44.50 129,200 16.15 $800,000 100.0% $120,000 100% $680,000 100% 60 408,000 272,000 40 68,000 10 36,000 30 84,000 70 61,200 51 226,800 28.35 $ 22,800 19% $204,000 30% 102,000 12.75 $124,800 15.60% Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $77,000 per y change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $50,000 next year and that sales in Vanco unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Rou answers to 2 decimal places.) Prev 1 of 4 Next >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Number of toys produced 60,000 120,000 150,000 O $0.20 What is the materials cost per unit of output? O $0.30 Starfun Toys, Inc. Cost of Materials O $0.70 O $0.50 Total cost of materials $18,000...
-
Your firm has a risk free investment opportunity where it can invest $160,000 today and receive $170,000 in one year, for what level of interest is this project attractive?
-
Given the following null and alternative hypotheses and the following sample information a. If = 0.05, state the decision rule for the hypothesis. b. Test the hypothesis and indicate whether the...
-
Water originally saturated with carbon tetrachloride \(\left(\mathrm{CCl}_{4} ight)\) at \(25.0^{\circ} \mathrm{C}\) and \(1.0 \mathrm{~atm}\) is stripped with pure air at \(25.0^{\circ} \mathrm{C}\)...
-
A marketing professor at Givens College is interested in the relationship between hours spent studying and total points earned in a course. Data collected on 10 students who took the course last...
-
Assess personal leadership style for healthcare management. Explore leadership style and how to utilizeunique skills to manage a healthcare environment effectively. Identify one or two leadership...
-
If the peripheral speed of a grinding wheel of 100 mm diameter for cylindrical grinding of a steel workpiece is 30 m/s, then the estimated rotational speed of the grinding wheel in revolution per...
-
At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $780,000, and direct materials costs, $600,000.At year-end, the...
-
Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead...
-
How is the are the environmental and sustainability consulting being disrupted by technology changes?
-
Big Bear BBQ Company sold 200 smokers during 2025 for $1,700 each together with a 1-year warranty. Warranty claims are estimated to be $150 per smoker. Actual warranty claims on the smokers in 2025...
-
Given the following profit payoff table, which decision would you choose based on a cautious decision approach? d d d3 d4 d d4 d2 O d and d3 d3 $1 50 80 100 300 $2 20 30 30 S3 -10 -20 -40 25 -160 Ac...
-
Write a short paper on Error in Survey Research
-
Consider the function f and its graph. a. Estimate the zeros of the area function b. Estimate the points (if any) at which A has a local maximum or minimum. c. Sketch a graph of A, for 0 x 10,...
-
A public company may not use a disclosed basis of accounting for external public financial reporting.
-
Canadian companies must always prepare their annual financial statements in Canadian dollars.
-
A company may take a big bath in a loss year if management wishes to maximize future earnings.
Study smarter with the SolutionInn App