Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies....
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 companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Office Toronto $1,050, 000 100.0% $150,000 100 $900, 000 100% 45, 000 30 105,000 70 63,000 42 312,000 29.71 $ 42,000 28% $270, 000 30% Total Company Vancouver Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Comnon fixed expenses not traceable to offices 585, 000 55.71 465,000 44.29 153,000 14.57 540, 000 60 360, 000 40 90, 000 10 108, 000 10.29 $ 204, 000 19.434 Operating incone Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $94.,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $75,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Segments Total Company Toronto Vancouver Amount Amount Amount Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Office Toronto $1,050, 000 100.0% $150,000 100 $900, 000 100% 45, 000 30 105,000 70 63,000 42 312,000 29.71 $ 42,000 28% $270, 000 30% Total Company Vancouver Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Comnon fixed expenses not traceable to offices 585, 000 55.71 465,000 44.29 153,000 14.57 540, 000 60 360, 000 40 90, 000 10 108, 000 10.29 $ 204, 000 19.434 Operating incone Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $94.,000 per year? Assume no change in cost behaviour patterns. Increase in operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $75,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.) Segments Total Company Toronto Vancouver Amount Amount Amount
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 Variable Cost varies with output whereas fixed cost remains constant Thus increa... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
Students also viewed these accounting questions
-
Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices one in Toronto and one in Vancouver. The firm...
-
Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone in Houston and one in Dallas. The firm...
-
Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices?one in Houston and one in Dallas. The firm...
-
The accompanying table shows proportions of computer salespeople classified according to marital status and whether they left their jobs or stayed over a period of 1 year. a. What is the probability...
-
What additional elements were included in relevance and reliability by PSAB? Why were they included?
-
Use the laws of exponents to simplify the expression. 3 2
-
For the home hemodialysis device operating with a blood flow rate of \(133 \mathrm{~mL} / \mathrm{min}\) and a dialysate flow rate of \(300 \mathrm{~mL} / \mathrm{min}\), the fiber-side (blood-side)...
-
At the time of his death this year on September 4, Kenneth owned the following assets. Fair Market Value City of Boston bonds $2,500,000 Stock in Brown Corporation 900,000 Promissory note issued by...
-
Johnson refused to file a federal income tax return, claiming that it was a violation of his right to privacy. He was arrested and charged with a violation of the Internal Revenue Code of the United...
-
What are the implications of the statement made by the head of operations that Today, apparel is produced just about everywhere on Earth, and we have basically run out of new low cost places to...
-
A simple project idea is to build a villa. The time schedule is developed for the major activities in this project. The duration time, ID (name), and dependency relationship, for each activity are...
-
Discuss how the level of output per person in the long run would likely be affected by each of the following changes: a. The right to exclude saving from income when paying income taxes. b. A higher...
-
Suppose that the head of the Finance Ministry in your country were to go on the record advocating an effort to restrain current consumption, arguing that "lower consumption now means higher savings;...
-
Sources of technological progress: Leaders versus followers a. Where does technological progress come from for the economic leaders of the world? b. Do developing countries have other alternatives to...
-
Voting rights and dual-class stock Investors valued the ride-hailing giant Lyft at more than $24 billion at the time of its 2019 IPO. The dual-class company had 273,097,591 shares of Class A common...
-
RED and growth a. Why is the amount of R\&D spending important for growth? How do the appropriability and fertility of research affect the amount of R\&D spending? How do each of the policy proposals...
-
A 500 mm diameter closed-end steel pipe pile is to be driven to a depth of 17 m into the following soil profile. Depth (m) 0-2.0 2.0-6.5 6.5 16.0 16.0 17.5 Soil Classification Silty sand Fine to...
-
The following information is for Montreal Gloves Inc. for the year 2020: Manufacturing costs Number of gloves manufactured Beginning inventory $ 3,016,700 311,000 pairs 0 pairs Sales in 2020 were...
-
Does the concept of the relevant range apply to fixed costs? Explain.
-
Define the following terms: joint products, joint product costs, and split-off point.
-
Mason Paper Company (MPC) manufactures large quantities of standard white 8 11 inch paper for use in computer printers and photocopiers. MPC has reported operating losses for the last two years due...
-
A single row impulse turbine develops \(130 \mathrm{~kW}\) at a blade speed of \(180 \mathrm{~m} / \mathrm{s}\) using \(2 \mathrm{~kg} / \mathrm{s}\) of steam. The steam leaves the nozzle at \(400...
-
In a \(50 \%\) reaction turbine stage running at \(50 \mathrm{rps}\), the exit angles are \(30^{\circ}\) and the inlet angles are \(50^{\circ}\). The mean diameter is \(1 \mathrm{~m}\). The steam...
-
At a stage of reaction turbine, the mean diameter of rotor is \(1.4 \mathrm{~m}\). the speed ratio is 0.7. Determine the blade inlet angle if the blade outlet angle is \(20^{\circ}\). The rotor speed...
Study smarter with the SolutionInn App