Prepare comparative income statements for the company as a

Assignment Help Accounting Basics

Reference no: EM13589149

Chamberline Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated.

CHAMBERLINE COMPANY Income Statements for the Year 2011
Segment	A			B			C
Sales	$	169,000		$	237,000		$	250,994
Cost of goods sold		(126,000	)		(91,000	)		(77,000	)
Sales commissions		(17,000	)		(25,000	)		(30,000	)

Contribution margin		26,000			121,000			143,994
General fixed oper. exp. (allocation of president's salary)		(43,000	)		(37,000	)		(44,000	)
Advertising expense (specific to individual divisions)		(7,000	)		(12,000	)		0

Net income	$	(24,000	)	$	72,000		$	99,994

Required:

b.	Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. (Amounts to be deducted should be indicated by a minus sign. Omit the "$" sign in your response.)

CHAMBERLINE COMPANY Comparative Income Statements for the Year 2011
Decision	Keep Seg. A	Eliminate Seg. A
Revenue	$	$
Cost of goods sold
Sales commissions

Contribution margin
Gen. fixed operating expenses
Advertising expense

Net Income	$	$

Reference no: EM13589149

Questions Cloud

If the filled balloon is fastened to a vertical line what : question an empty rubber balloon has a mass of 0.0109 kg . the balloon is filled with helium at a density of 0.178 kgm3

Thome company uses a flexible budget for manufacturing : thome company uses a flexible budget for manufacturing overhead based on direct labor hours. variable manufacturing

A body slides down a plane inclined at 40 degrees to the : question a body slides down a plane inclined at 40 degrees to the horizontal with an acceleration of 2.3 meterssecond2.

Department j had no work in process at the beginning of the : department j had no work in process at the beginning of the period 18000 units were completed and transferred out

Prepare comparative income statements for the company as a : chamberline company operates three segments. income statements for the segments imply that profitability could be

Assuming that all direct materials are placed in process : assuming that all direct materials are placed in process at the beginning of production what is the total cost of the

Consider the interaction between an electron and a proton : question consider the interaction between an electron and a proton separated by some distance r. compare the

The operations vice president of first bank of eagle : the operations vice president of first bank of eagle kristin wu has been interested in investigating the efficiency of

Characterize the differences among untreated : 1. characterize the differences among untreated primary-treated and secondary-treated sewage and compare and explain

User Account

All Pages