Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    Exercise 12-12 Working With A Segmented Income Statement (LO1)

    Uploaded by

    Emily Bailey Folsom
    - Marple Associates is a consulting firm with two offices that specializes in construction and landscaping. - The document provides sales, variable expenses, contribution margin, fixed expenses, and market segment margin for Dallas' construction and landscaping clients. - The company is considering an advertising campaign that would increase construction sales by $38,500 or landscaping sales by $33,000, both at a cost of $4,400. - For construction, the increase in net operating income would be $9,075. For landscaping, the increase in net operating income would be $12,100.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Exercise 12-12 Working With A Segmented Income Statement (LO1)

    Uploaded by

    Emily Bailey Folsom
    3K views1 page
    - Marple Associates is a consulting firm with two offices that specializes in construction and landscaping. - The document provides sales, variable expenses, contribution margin, fixed expenses, and market segment margin for Dallas' construction and landscaping clients. - The company is considering an advertising campaign that would increase construction sales by $38,500 or landscaping sales by $33,000, both at a cost of $4,400. - For construction, the increase in net operating income would be $9,075. For landscaping, the increase in net operating income would be $12,100.

    Original Description:

    Original Title

    211146

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    - Marple Associates is a consulting firm with two offices that specializes in construction and landscaping. - The document provides sales, variable expenses, contribution margin, fixed expenses, and market segment margin for Dallas' construction and landscaping clients. - The company is considering an advertising campaign that would increase construction sales by $38,500 or landscaping sales by $33,000, both at a cost of $4,400. - For construction, the increase in net operating income would be $9,075. For landscaping, the increase in net operating income would be $12,100.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    3K views1 page

    Exercise 12-12 Working With A Segmented Income Statement (LO1)

    Uploaded by

    Emily Bailey Folsom
    - Marple Associates is a consulting firm with two offices that specializes in construction and landscaping. - The document provides sales, variable expenses, contribution margin, fixed expenses, and market segment margin for Dallas' construction and landscaping clients. - The company is considering an advertising campaign that would increase construction sales by $38,500 or landscaping sales by $33,000, both at a cost of $4,400. - For construction, the increase in net operating income would be $9,075. For landscaping, the increase in net operating income would be $12,100.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 1

    Question 8: (3 points)

    Exercise 12-12 Working with a Segmented Income Statement [LO1] Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Houston and one in Dallas. The firm classifies the direct costs of consulting jobs as variable costs. Assume that Dallas' sales by major market are as follows: Market Dallas Sales Variable expenses Contribution margin Traceable fixed expenses Market segment margin Common fixed expenses not traceable to markets Office segment margin $ 330,00 0 198,00 0 132,00 0 39,600 92,400 9,900 $ 82,500 100 % 60 40 12 28 3 25 % $ Construction Clients 220,00 0 143,00 0 77,000 11,000 $ 66,000 100 % 65 35 5 30 % Landscaping Clients $ 110,00 0 55,000 55,000 28,600 $ 26,400 100 % 50 50 26 24 %

    The company would like to initiate an intensive advertising campaign in one of the two markets during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the construction market by $38,500 or increase sales in the landscaping market by $33,000. Required: Determine the net operating income for the company as a whole. (Omit the "$" sign in your response.) Construction Clients Net operating income $

    Landscaping Clients $

    For construction clients, the increase in contribution margin is 38,500X0.35 = 13,475. The increase in cost is 4,400. Increase in net operating income for the company is 13,475-4,400=$9,075 For Landscaping clients the increase in contribution margin is 33,000X0.5 = 16,500. The increase in cost is 4,400. Increase in net operating income for the company is 16,500-4,4,00=$12,100.

    You might also like