Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies....
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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 Total Company Toronto Vancouver $800,000 100% Sales $960,000 100.0% $160,000 100% 528,000 55.00 48,000 30 480,000 60 Variable expenses Contribution margin 112,000 70 320,000 40 Traceable fixed expenses 432,000 45.00 172,800 18.00 259,200 27.00 92,800 58 80,000 10 $ 19,200 12% $240,000 30% Office segment margin Common fixed expenses not traceable to offices 120,000 12.50 Operating income $139,200 14.50% 2-a. Refer to the original data. Assume that sales in Toronto increase by $40,000 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.) 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 Total Company Toronto Vancouver $800,000 100% Sales $960,000 100.0% $160,000 100% 528,000 55.00 48,000 30 480,000 60 Variable expenses Contribution margin 112,000 70 320,000 40 Traceable fixed expenses 432,000 45.00 172,800 18.00 259,200 27.00 92,800 58 80,000 10 $ 19,200 12% $240,000 30% Office segment margin Common fixed expenses not traceable to offices 120,000 12.50 Operating income $139,200 14.50% 2-a. Refer to the original data. Assume that sales in Toronto increase by $40,000 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.)
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Answer rating: 100% (QA)
Toronto Increased sala by 49000 Total humpay 1000000 10000 d Sales 540000 54 Vanab... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
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