Reference no: EM131779795

Assignment

Miller Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment.

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

$(29,000)

$220,000

$142,000

$(31,000)

When using data from a segmented income statement, the dollar sales for the company to break even overall is equal to:

A:(Traceable fixed expenses) ÷ Overall CM ratio
B:(Non-traceable fixed expenses + Common fixed expenses) ÷ Overall CM ratio
C:(Allocated fixed expenses + Traceable fixed expenses) ÷ Overall CM ratio
D:(Traceable fixed expenses + Common fixed expenses) ÷ Overall CM ratio

A company that produces a single product had a net operating income of $93,000 using variable costing and a net operating income of $132,440 using absorption costing. Total fixed manufacturing overhead was $60,180 and production was 11,800 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level: (Do not round intermediate computation and round your final answer to nearest whole number.)

a-decreased by 39,440 units
b-decreased by 7,733 units
c-increased by 7,733 units
d-increased by 39,440 units.