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Author Question: Nobles Corporation provided the following segment margin income statement for two of its divisions: ... (Read 57 times)

olsonmanny@gmail.com

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on: Feb 5, 2023
Nobles Corporation provided the following segment margin income statement for two of its divisions: East and West.

​​EastWestTotal
Revenue$510,000$480,000$990,000
Variable expenses​​​
  Product370,000 260,000630,000
  Selling and administrative   80,000    88,000 168,000
Contribution margin60,000 132,000192,000
Less traceable fixed costs   20,000    40,000   60,000
Segment margin$  40,000$  92,000132,000
Common fixed costs​​ 140,000
Net operating income​​($   8,000)

Nobles' actual weighted-average cost of capital is 10% and its tax rate is 30%. The East division balance sheet showed $300,000 of assets ($60,000 current and $240,000 long-term) and $320,000 of liabilities ($120,000 current and $200,000 long-term). The West division reported $360,000 of assets ($80,000 current and $280,000 long-term) and $260,000 of liabilities ($60,000 current and $200,000 long-term).

Required:

a.Calculate the economic value added for each division.
b.Which of the two managers will be rated higher on performance? Why?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by olsonmanny@gmail.com on Feb 5, 2023

MistyHubbard

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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olsonmanny@gmail.com

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Reply 2 on: Feb 5, 2023
Gracias!

daiying98

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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