Prepare a properly formatted income statement

Assignment Help Corporate Finance
Reference no: EM1345583

Niesen Corporation has two major business segments-consumer and commercial. Data for the segment and for the company for August appear below:

Sales Revenues, consumer = $690,000
Sales Revenues, Commercial = $310,000
Variable Expenses, consumer = $290,000
Variable expenses, commercial = $164,000
Traceable fixed expenses, consumer = $104,000
Traceable fixed expenses, commercial = $ 50,000

In addition, common fixed expenses totaled $282,000 and were allocated as follows : $127,000 to the consumer business segment and $155,000 to the commercial business segment.

A) Prepare a properly formatted income statement

B) The contribution margin of the commercial business segment is : ?

C) A properly constructed segmented income statement in a contribution format would show that the segment margin of the consumer business segment is : ?

D) a properly constructed segmented income statement in a contribution format would show that the net operating incomeof the company as a whole is ; ?

 

Reference no: EM1345583

Questions Cloud

Major types of foreign exchange risks : What are the major types of foreign exchange risks? How are these risks hedged or mitigated? What benefits do firms gain from hedging activities?
Find materials price variance : The Litton Corporation has established Standards as follows:
Description of foreign exchange : Examine the impact of the foreign exchange and derivatives markets in General Motors and countries in which General Motors is considering expansion
Creating project organization in enterprise business : Organization structures generally used to create a project organization in an enterprise business environment.
Prepare a properly formatted income statement : Niesen Company has two major business segments-consumer and commercial. Information for the segment and for the corporation for August appear below:
Cfo of mid-sized company : Suppose the role of a CFO of a mid-sized company that exports to Europe. Your company received a contract to supply components to a German manufacturer.
Show the warned value management : Earned Value Management - Purpose a five minute presentation of the issue, the sides of the argument and your recommendation
Real estate finance : Discuss various types of derivatives contracts: Options, Futures and Forward Contracts. Discuss various types of government and central bank intervention to impact currency exchange rates.
Find lowest acceptable transfer price : The commando motorcycle corporation has decided to become decentralized and split its operations into 2 divisions. Motor and Assembly. Both divisions will be treated as investment centers.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Find expected dollar return on the gamble

Assume that a person won the Florida lottery and was offered a choice of two prizes:

  Describe how the free cash flows approach can produce

Describe how the free cash flows approach can produce valuations of firms when they are expected to generate negative free cash flows over the next five years.

  Find net unrealized loss

Sun Corporation had investments in marketable equity securities costing 650,000 on June 30, year 2. Sun Corporation decided to hold the investments indefinitely and accordingly reclassified.

  Find the stock price according to mm proposition1

Consider two company, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm with one million shares outstanding that trade for a price of dollar 24 per share.

  Negative aspects of financial statement

Analyzing the positive and negative aspects of financial statement - Negative aspects of Kevin and Stacy's current financial status.

  Find irr and wacc of the project

MT 217 can manufacture new PDA for $200 each in variable costs. Fixed costs for the operation are determined to run $4.5 million per year. The estimated sales volume is 70,000, 80,000, 100,000, 85,000, & 75,000 every year for the next 5-years, respec..

  Theory question based on investment in stock

Theory question based on investment in stock - What if she repeats the experiment 10 times?

  Find the ebit-eps indifference point

Find the EBIT-EPS indifference point - Morton Industries is considering opening a new subsidiary in Boston, to b operated as a separate company.

  Weighted average of the betas of individual securities

betas of individual securities - weighted average of the betas of individual securities.

  Fund raising strategies

Assume you are the Chief Financial Officer of a struggling firm. While you do have a positive cash flow, it is minimal at best. If something does not change soon, the firm will go under.

  Calculation of cost of preferred stock and cost of debt

Calculation of cost of preferred stock, cost of debt, and cost of issuing new stock -  The financial motives for merger.

  Evaluation of sum of values of pure business flows

Evaluation of Sum of values of pure business flows and financing effect - Financing flows should be discounted at the rate of return required by the providers of debt.

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