Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,534,000 Variable expenses 511,360 Contribution margin 1,022,640 Fixed expenses 1,125,000 Net operating income (loss) $ (102,360) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 374,000 $ 660,000 $ 500,000 Variable expenses as a percentage of sales 44 % 23 % 39 % Traceable fixed expenses $ 259,000 $ 330,000 $ 198,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 11%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising?
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Business, 22.06.2019 06:30
If a team of three workers, each making the u.s. federal minimum wage, produced these 12 rugs, what would the total labor cost be? don't forget that these workers would be working overtime.
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Business, 22.06.2019 18:00
Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan
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Business, 22.06.2019 19:30
Which of the following constitute the types of unemployment occurring at the natural rate of unemployment? a. frictional and cyclical unemployment.b. structural and frictional unemployment.c. cyclical and structural unemployment.d. frictional, structural, and cyclical unemployment.
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Business, 23.06.2019 21:00
Question 20 if orange juice prices double next year, there will be a rightward shift in the demand for grapefruit juice. rightward shift in the supply of grapefruit juice. leftward shift in the supply of grapefruit juice. leftward shift in the demand for grapefruit juice.
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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for s...
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