Exam 4: Variable Costing and Segment Reporting: Tools for Management

Jarvix Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month.The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under absorption costing?

Data for March for Lazarus Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $156, 000 and were allocated as follows: $84, 000 to the North business segment and $72, 000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

Sosinski Corporation has two divisions: Domestic Division and Foreign Division.The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to:

Bode Corporation has two divisions: East and West.Data from the most recent month appear below: The company's common fixed expenses total $47, 300.If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income?