Reference no: EM132482163
Question - Wingate Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly statement of profit or loss below:
Sales £1,000,000
Less variable expense £390,000
Contribution margin £610,000
Less fixed expenses £625,000
Operating profit (loss) £(15,000)
In an effort to isolate the problem, the president has asked for a statement of profit or loss segmented by division. Accordingly, the Accounting Department has developed the following information:
|
|
East
|
Central
|
West
|
|
Sales
|
£250,000
|
£400,000
|
£350,000
|
|
Variable expenses as a percentage of sales
|
52%
|
30%
|
40%
|
|
Traceable fixed expenses
|
£160,000
|
£200,000
|
£175,000
|
Required -
1. Draft a statement of profit or loss segmented by divisions, as desired by the president. Show both amount and percentage columns for the company as a whole and for each division.
2. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if advertising in that division was increased by £15,000 each month. Would you recommend the increased advertising? Show computations.
|
Why would you expect the inflation rate to accelerate
: Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate
|
|
Explain the effects of the imposition of an export tax
: Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country's government on
|
|
State has a duty to support marriage between man and women
: State has a duty to support marriage between a man and a woman, and a duty to refrain from getting legally involved in other types of relationships
|
|
Project management competencies and project selection method
: Project Management Competencies and Project Selection Methods - Understand PMBOK knowledge areas and process groups and their role, relevance and impact
|
|
Draft a statement of profit or loss segmented by divisions
: Draft a statement of profit or loss segmented by divisions, as desired by the president. Show both amount and percentage columns for the company
|
|
Main roles that democratic governments play in a market
: What are the main roles that democratic governments play in a market economy, and what are the potential issues that governments may face regarding these roles?
|
|
Determine which folders should be changed
: Review the Access Controls Criteria table of this lab to determine which folders should be changed and which users or groups should be modified
|
|
Discuss the lowell system of manufacturing
: Discuss the Lowell system of manufacturing, and how that system, while provide independence for women, continued to perpetuate their second class economic
|
|
Prepare Blossoms journal entries for January
: On January 1, 2020, Blossom Corporation granted 5,900 options to executives. Prepare Blossom journal entries for January 1, 2020, and December 31, 2020 and 2021
|