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Pharoah Company has four operating divisions. During the first quarte.pdf

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Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 52 weeks in a year. Refer to the standard normal table for z-values Demand =78,000 units/year > Ordering cost =$30.00 order > Holding cost =$2.50 unitlyear > Average lead time =9 weeks > Standard deviation of weekly demand =175 units a. The economic order quantity for this item is units. (Enter your response rounded to the nearest whole number.).

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Pharoah Company has four operating divisions. During the first quarter of 2022 , the company reported aggregate income from operations of $207,000 and the following divisional results. Analysis reveals the following percentages of variable costs in each division. Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued. Prepare a columnar condensed income statement for Pharoah Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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  • 1. Pharoah Company has four operating divisions. During the first quarter of 2022 , the company reported aggregate income from operations of $207,000 and the following divisional results. Analysis reveals the following percentages of variable costs in each division. Discontinuance of any division would save 50% of the fixed costs and expenses for that division. Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued. Prepare a columnar condensed income statement for Pharoah Company, assuming Division II is eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)