95) Muench Company has three departments.  Data for the most recent year is presented below:

     M        L        B  

Sales$2,000$1,000$400

Variable expenses640260170

Fixed expenses:

Unavoidable46026060

Avoidable580520270

Required:

a.Compute the operating income of the company.

b. Compute the contribution margin and operating income of each department.

c.Should any department(s) be eliminated? Which one(s) and why?

96) Morrow, Inc. has three departments.  Data for the most recent year is presented below:

      A            B                C       

Sales$20,000$15,000$11,200

Variable expenses11,4008,2002,600

Fixed expenses:

Unavoidable2,4002,0002,200

Avoidable9,2005,8001,800

Required:

a.Compute the operating income of the company.

b.Compute the contribution margin and the operating income of each department.

c.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *