Using a Responsibility Income Statement

question 97

Essay

Using a responsibility income statement
Shown below is the current monthly income statement of Metro Video, by profit centers:
METRO VIDEO
Income Statement by Profit Centers
For the Month Ended April 30, 20__

On the basis of this information, compute the increase in monthly income from operations that may be expected to result from each of the following actions:
(a) Spending $5,000 per month in advertising is expected to increase sales in the Equipment Sales Department by 35%. $_________________ (b) Closing the Equipment Sales Department and allowing the Video Rentals Department to expand is expected to increase the revenue of the Video Rentals Department by $105,000 per month. This action also is expected to increase fixed costs traceable to the Video Rentals Department by $40,000 per month. $________________

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Definitions:

Summary Query

A database query that aggregates data, such as summing numbers or counting occurrences, to provide a summary rather than detailed records.

Query Datasheet

A datasheet view displaying the results of a query in database applications.

Total Row

A row in a spreadsheet or database table that calculates and displays the sum, average, or other aggregate functions of numeric data in columns above it.

Calculate Statistics

The process of analyzing numerical data to derive meaningful insights, often involving measures of central tendency and variability.