Novak Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $200,300 and the following divisional results.
Division
I II III IV
Sales $253,000 $198,000 $495,000 $447,000
Cost of goods sold 198,000 190,000 303,000 254,000
Selling and administrative expenses 74,700 65,000 56,000 52,000
Income (loss) from operations $(19,700) $(57,000) $136,000 $141,000
Analysis reveals the following percentages of variable costs in each division.
I II III IV
Cost of goods sold 68% 90% 79% 75%
Selling and administrative expenses 37 60 49 61
Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued.
Required:
Prepare a columnar condensed income statement for Novak Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions.
Answers: 2
Business, 22.06.2019 15:40, aroman4511
Rachel died in 2014 and her executor is finalizing her estate tax return. the executor has determined that rachel’s adjusted gross estate is $10,120,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. using 2014 rates, calculate the estate tax liability for rachel’s estate.
Answers: 1
Business, 23.06.2019 09:00, aprilstalder
It will gain you more knowledge, intensify your soft skills, grow your strong work ethics and grow your network and grow your network. what is it ?
Answers: 3
Business, 23.06.2019 10:30, alyssatamayo641
This pie chart shows a sample weekly budget. in this budget, how much money is going toward optional expenses? $70 $75 $10 $35
Answers: 1
Business, 23.06.2019 11:00, matthewlucas8613
How do you write a business plan ? i will give you a brainliest.
Answers: 1
Novak Company has four operating divisions. During the first quarter of 2017, the company reported a...
Social Studies, 12.10.2019 14:00
Mathematics, 12.10.2019 14:00
Arts, 12.10.2019 14:00
Social Studies, 12.10.2019 14:00
Mathematics, 12.10.2019 14:00
Mathematics, 12.10.2019 14:00
Mathematics, 12.10.2019 14:00