92) The Cabinet Company provided the following information:

CompanySteelWood

as a wholeDivisionDivision

Net sales$225,000$140,000$ 85,000

Fixed costs:

Controllable by

division managers40,00025,00015,000

Controllable by

others25,00012,50012,500

Variable costs:

Cost of

merchandise sold95,00055,00040,000

Operating expenses20,00012,5007,500

Unallocated costs15,000

Required: Prepare a contribution approach income statement for the company as a whole and also for the divisions.

93) Wilson Corporation and Beattie Company are computer companies.  Comparative data for 20X1 and 20X6 are given below.

WilsonBeattie

CorporationCompany

Sales revenue20X1$1,175,000$1,850,000

20X62,600,0003,950,000

Number of

employees20X13,7005,550

20X64,5008,750

Assume that each 20X1 dollar is equivalent to 1.72 of the 20X6 dollars, due to inflation.

Required:

a.Compute Wilson’s and Beattie’s 20X1 and 20X6 revenues per employee in 20X6 dollars.

b.Compare Wilson’s change in productivity between 20X1 and 20X6 with that for Beattie.  Do you note an



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