Reference no: EM132523833
A recent accounting graduate evaluated the operating performance of Rock Company's three divisions. The following presentation was made to Rock's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Western Division but keep the other two divisions, stating that total net income would increase by $20,000 as shown in the analysis below.
Other two division Western Division Total
SALES 1,000,000 300,000 130,000
COGS 650,000 200,000 850,000
Profit 350,000 100,000 450,000
Operating 100,000 120,000 220,000
costs
Net Income 250,000 (20,000) 230,000
- Cost of goods sold is 75% variable and operating expenses are 70% variable. If the Western division is eliminated, 40% of the fixed costs will be eliminated.
Instructions
Question 1: Do you agree with the new accountant's recommendation? To support your answer present a full incremental analysis schedule, with calculations, to compare the financial performance if Western continues in the group or is eliminated.
|
Calculate the basic earnings per share
: During the year, 30,000 treasury shares were repurchased from the open market at $35 on 1 September 2019. Calculate the basic earnings per share
|
|
Write a short essay on vehicle theft
: In most "stolen-vehicle" cases the reporter/victim reports his/her vehicle stolen in order to make a claim on his or her auto insurance to recover the loss.
|
|
Discuss how the patient experiencing problems
: Discuss how the patient experiencing problems with the cells repairing from the cut and the child's reproduction development malfunctions can alter haploid
|
|
Determine the profit or loss per contract-ignoring
: When this position was closed out, the quoted price was 94.75. Determine the profit or loss per contract, ignoring transaction costs.
|
|
Compare the financial performance
: Do you agree with the new accountant's recommendation? To support your answer present a full incremental analysis schedule, with calculations
|
|
Profit from t-bond futures
: When this position was closed out, the price of the Treasury bond futures contract was 90-10. Determine the profit or loss, ignoring transaction costs.
|
|
Write full incremental columnar analysis report for hightech
: Write a full incremental columnar analysis report for Hightech Company which can assist make-or-buy decision. Would recommend that Hightech buy in the component
|
|
What amount of revenue would nippon earn from tax services
: Calculate the company's degree of operating leverage, assuming the desired net income of $1,800,000 and expected contribution margin are achieved.
|
|
Purchasing power of a money in the future
: Suppose the government releases information that causes people to expect that the purchasing power of a money in the future
|