Steve company a retail company has two departments g and s

Reference no: EM13582984

Steve Company, a retail company, has two departments, "G" and "S". The company's most recent monthly contribution format income statement is presented below. Steve Company, a retail company, has two departments, "G" and "S". The company's most recent monthly contribution format income statement is presented below.

...................................Total..................................G...............................S
Sales....................... $ 6,000,000 ................$ 2,000,000 ............$ 4,000,000
Variable Expenses ...3,000,000...................1,400,000 ................1,600,000
Contribution
Margin ........................3,000,000................. 600,000...........2,400,000
Fixed expenses ........1,800,000,.................800,000 .........1,000,000
Net operating
income (loss) ..............$1,200,000.............$(200,000)............$1,400,000

A study indicates that $350,000 of the fixed expenses being charged to "G" department are sunk costs, or allocated costs that will continue (that is the other department will have to absorb those costs) even if the "G" department is dropped. In addition, the elimination of the "G" department would result in a 10% increase in the sales of the "S" department.

Reference no: EM13582984

Questions Cloud

What amount of overhead would be allocated to the wool and : american fabrics has budgeted overhead costs of 1259280. it has allocated overhead on a plantwide basis to its two

Raner harris amp chan is a consulting firm that specializes : raner harris amp chan is a consulting firm that specializes in information systems for medical and dental clinics. the

Identify the level at which engineering design would be : engineering design is an activity vital to the success of any motor vehicle manufacturer. identify the level at which

Create a wellness newsletter geared towards either a : in this assignment create a wellness newsletter geared towards either a community or corporate setting using ms

Steve company a retail company has two departments g and s : steve company a retail company has two departments g and s. the companys most recent monthly contribution format income

Evaluate the product or service or company in terms of how : marketing essaythis a real life case study and this will be discussed by your lecturer. you will pick a real company

A survey is being planned to estimate the prevalence of : q1. for this assignment you will be provided with 2 clinical research questions on sample size and one published

Financial statements are a product of the accounting cycle : financial statements are a product of the accounting cycle. think about two different companies a manufacturing company

Use the ps power calculator to find out how many : question previous small study was investigating the total cost of 10 specific items of fruits and vegetables which

User Account

All Pages