Exam 11: Variable Costing and Segment Reporting: Tools for Management

Currently the sales clerks receive a salary of $7,000 per month in Store B. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume that this proposal is adopted, and that as a result sales increase by $20,000. The new segment margin for Store B should be:

The company's overall break-even sales is closest to:

The Consumer Division's break-even sales is closest to:

What was the absorption costing net operating income this year?

The contribution margin of the South business segment is:

The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product: What was the absorption costing net operating income last year?

Under variable costing the value of the ending finished goods inventory would be:

What is the unit product cost for the month under variable costing?

What is the total period cost for the month under the absorption costing?

What is the unit product cost for the month under absorption costing?

Under absorption costing, the unit product cost is:

The total contribution margin for the month under variable costing is:

Because absorption costing emphasizes costs by behavior, it works well with cost-volume-profit analysis.

Under variable costing, product cost does not contain any fixed manufacturing overhead cost.

Sidell Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing. Show your work!

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

What is the net operating income for the month under variable costing?

What is the net operating income for the month under variable costing?

Warburton Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: The company's common fixed expenses total $85,690. The break-even in sales dollars for Alpha Division is closest to:

Data for March concerning Mauger Corporation's two major business segments-Fibers and Feedstocks-appear below: Common fixed expenses totaled $461,000 and were allocated as follows: $249,000 to the Fibers business segment and $212,000 to the Feedstocks business segment. Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.