Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Most newly monthly contribution format income statement for Raven Company is provided below:

Raven Company
Income Statement
For the Month Ended May 31
Sales $900,000 100.0%
Variable expenses 408,000 45.3
Contribution 492,000 54.7
Fixed expenses 465,000 51.7
Net operating income $ 27,000 3.0%

Management is dissatisfied with company's performance and is speculating what can be done to enhance profits. By studying sales and cost records following is found out:

a. Company is divided into 2 sales territories-Central and Eastern. Central Territory recorded $400,000 in sales and $208,000 in variable expenses in May. Enduring sales and variable expenses were recorded in Eastern Territories. Fixed expenses of $160,000 and $130,000 are traceable to Central and Eastern Territories, respectively. Rest of fixed expenses are common to two territories.

b. Company is exclusive distributor for two products- Haws and Paws. Sales of Haws and Paws totalled to $100,000 and $300,000, respectively, in Central Territory during May. Variable expenses are 25% of selling price for Haws and 61% for Paws. Cost records illustrate that $60,000 of the Central Territory's fixed expense is traceable to Haws and $54,000 to Paws, with remainder common to two products.

1. Make contribution format segmented income statements, first illustrating total company broken down between sales territories and then illustrating the Central Territory broken down by product line. Demonstrate both Amount and Percent columns for company in total and for every segment.

2. After reviewing Central Territory segmented by sales territory, and determine what points exposed by this statement must be brought to management attention.

3. After viewing Central Territory segmented by product line, what points must be brought to management attention?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M931273

Have any Question? 


Related Questions in Business Management

Using what you have learned about the business applications

Using what you have learned about the business applications of wireless networks and the benefits of the mobility that it allows, develop a completely mobile and wireless class for the future.  Take into consideration th ...

Assume that the united states trades exclusively with

Assume that the United States trades exclusively with nations in the European Union and that the exchange rate between the U.S. and the E.U. is flexible. Suppose Americans working in the textile industry decide to boycot ...

Write a two-page reflection paper by recommending at least

Write a two-page reflection paper by recommending at least six marketing and advertising strategies (concepts) and explaining how each strategy would strengthen the brand for an e-commerce site. Use Times New Roman, 12 p ...

1 what trade-offs are involved in deciding on whether to

1.) What trade-offs are involved in deciding on whether to offer a product or service guarantee? 300 words minimum please 2.) When a new business is started, or a patent idea needs funding, venture capitalists or investm ...

The readings this week raise issues that are direct or

The readings this week raise issues that are direct or indirect effects of the use of information technology: a) the digital divide b) online addictions c) online media - fact or fiction d) accessible information technol ...

Series - parallel resistive circuits75 to 150 wordsdiscuss

Series - Parallel Resistive Circuits 75 to 150 Words Discuss how you can identify which resistances are in series and which ones are in parallel in a series-parallel circuit. How might this affect how you measure current ...

Organizations assignmentfor this assignment you will

Organizations Assignment For this assignment, you will investigate a social media public relations (PR) campaign by an organization. Some examples of platforms are LinkedIn, Twitter, Facebook, Google+, Pinterest, and You ...

What approach do you think is best for promoting continual

What approach do you think is best for promoting continual improvement, and why? Be as specific as possible in explaining your choice of approach and include relevant theory, and/or examples, as appropriate.

Suppose your supervisor has asked you to lead an

Suppose your supervisor has asked you to lead an Appreciative Inquiry process and as a first step you need to conduct some interviews with your coworkers. Do a search on "Appreciative Inquiry Questions" or "Appreciative ...

According to our text studies show that defensive medicine

According to our text studies show that defensive medicine seems to be harming health care physicians are acting out of fear for malpractice suits and their actions are not beneficial to the treatment of the patient it i ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen