The president of ravens inc. attended a seminar about the contribution margin model and returned to her company full of enthusiasm about it. she requested that last year’s traditional model income statement be revised, and she received the following report: division total company a b c sales $ 418,000 $ 166,000 $ 106,000 $ 146,000 variable expenses 244,000 105,000 60,000 79,000 contribution margin $ 174,000 $ 61,000 $ 46,000 $ 67,000 fixed expenses 130,000 43,000 48,000 39,000 net income (loss) $ 44,000 $ 18,000 $ (2,000 ) $ 28,000 the president was told that the fixed expenses of $130,000 included $90,000 that had been split evenly between divisions because they were general corporate expenses. after looking at the statement, the president exclaimed, "i knew it! division b is a drag on the whole company. close it down! " required: a. evaluate the president's remark. the president's remark ignores the misleading result of arbitrarily allocated fixed expenses. the president's remark ignores the misleading result of arbitrarily allocated variable expenses. b. calculate what the company's net income would be if division b were closed down. c. write a policy statement related to the allocations of fixed expenses.

Allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made a list of all of the items to be covered by the insurance policy, along with their estimated values. if the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. if the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?

Lauer corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: date transaction number of units cost per unit 1/1 beginning inventory 210 $ 910 5/5 purchase 310 $ 1,010 8/10 purchase 410 $ 1,110 10/15 purchase 255 $ 1,160 during the year, lauer sold 1,025 laptop computers. what was cost of goods sold using the lifo cost flow assumption?