The operations of Jorge Corporation are divided into the Northern Division and the Eastern Division. Projections for the next year are as follows:
Northern Division Eastern Division Total
Sales $ 750,000 $ 540,000 $ 1,290,000
Less: Variable costs 270,000 300,000 570,000
Contribution margin $ 480,000 $ 240,000 $ 720,000
Less: Direct fixed costs 225,000 190,000 415,000
Segment margin $ 255,000 $ 50,000 $ 305,000
Less: Allocated common costs 130,000 95,000 225,000
Operating income (loss) $ 125,000 $ (45,000 ) $ 80,000
Required:
a. Operating income for Jorge Corporation, as a whole, if the Eastern Division were dropped would be .b. If Eastern Division is dropped, Northern's sales will increase by 20%. What will Jorge Corporation's operating income be?

Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chance’s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.