Calculate profitability of Flare Fashions three departments

Assignment Help Accounting Basics
Reference no: EM133033071

Question - Flare Fashions is a clothing store that has three departments: men's, women's and children's clothing. Sales and variable costs for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third (1/3) share of rental and management costs for the clothing store as a whole (as shown in the table below).

 

Men's

Women's

Children's

Sales

$175,000

$280,000

$115,000

Variable costs as a percentage of department sales

45%

53%

49%

Departmental fixed costs

$50,000

$55,000

$35,000

Department's portion of shared fixed costs

$35,000

$35,000

$35,000

Required -

a. Calculate the profitability of Flare Fashions' three departments.

b. Management is considering shutting down one or more of Flare Fashions' departments, and would like your advice. What recommendations can you provide management?

Reference no: EM133033071

Questions Cloud

Midterm case assignment : In the Content section, the Week Seven folder will link you to the Midterm Case Analysis assignment. (You can also go directly to the assignment in the Assignme
Determine the EOQ : Determine the EOQ if? (1) the conditions stated above? hold, (2) order cost is? $1.00 rather than ?$55?, and? (3) order cost is ?$55 but carrying cost is ?$0.01
Critically analyse the Efficient market Hypothesis : Critically analyse the Efficient market Hypothesis (EMH) and its relevance in a highly volatile setting such as a global pandemic especially as they relate
Probability of receiving at least three emails : According to a 2017 survey conducted by the technology market research firm The Radicati Group, U.S. office workers receive an average of 121 emails per day.† S
Calculate profitability of Flare Fashions three departments : Flare Fashions is clothing store that three departments: men's, women's and children's clothing. Calculate profitability of Flare Fashions three departments
Discuss the potential of global business : Discuss potential of global business, including its many benefits and challenges. Use your textbook and lab book as resources and follow the rubric in course
Principles of routine messages : Read the following case and respond by writing an Email as outlined below. Be sure to utilize the principles of Routine Messages as studied in class.
How public administrators can circumvent federal laws : Which document describes how public administrators can circumvent federal laws prohibiting the firing and hiring of career employees based on their political lo
Should states share criminal databases : How much access should we have to certain aspects of others' private lives? For example, should states share criminal databases?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the annual depreciation allowances

A piece of newly purchased industrial equipment costs $975,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7.

  Determine the amount of lease expense

Determine the amount of lease expense, if any, that CIC would recognize in the first month of lease. Identify the IASB pronouncement that supports your answer.

  What portion of the profit or loss should allocated to Mary

The building is initially recorded on the partnership's books at Mary's book value (P228,000). What portion of the profit or loss should be allocated to Mary

  Which depreciation method would you choose

Which depreciation method would you choose: straight line (SL) or double declining balance (DDB)

  Wells water systems recently reported 8250 of sales 4500 of

wells water systems recently reported 8250 of sales 4500 of operating costs other than depreciation and 950 of

  What does social responsibility mean to personally

Do you think business organizations should be socially responsible? What do you think is the best way for managers to ensure their employees act ethically?

  Complete the budgeted income statement for january

Tuition revenue in December 2011 was $70,000, and tuition revenue budgeted for January 2012 is $100,000. Complete the Budgeted Income Statement For January

  Compute for the ending balances of partners capital accounts

Compute for the ending balances of the partners' capital accounts. A invested P200,000 cash, while B invested a non cash asset

  The company classifies the investments as available for sale

Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale.

  How much of this contract was recognized last year

Credits: Cost incurred $3,450,000 Collections $3,900,000 Estimated cost to complete $3,630,000. How much of this contract was recognized last year

  Prepare journal entries in the general fund general journal

Prepare journal entries in the General Fund general journal to record the issuance of purchase orders and to record the receipt of and payment for goods

  Calculate the amount of net income

Collected $3,800 of cash from accounts receivable. The amount of net income recognized on Nelson Company's 2016 income statement is

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd