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    Doggy World - performance in Dayton

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    Please open the attached file (P7_18A) to see the problem, also please use the attached file (Solution_CH7) to write your solution.

    Doggy world operates a chain of pair store in the Midwest. The manager of each store reports to the regional manager, who, in turn, reports to the headquarters in the Milwaukee, Wisconsin. The actual income statements for the Dayton store, the Ohio region (include the Dayton store), and the company as a whole (including the Ohio region) for July 2011 are as follows:
    DOGGY WORLD
    Income statement
    For the month ended July 31, 2011
    Dayton Ohio Companywide
    Revenue $158,400 $1,760,000 $4,400,000
    Expense:
    Regional manager/headquarters office $ ---- $58,000 $122,000
    Cost of materials 85,536 880,000 1,760,000
    Salary expense 41,184 440,000 1,100,000
    Depreciation expense 7,800 91,000 439,000
    Utility expense 4,000 46,600 264,000
    Rent expense 2,500 34,500 178,000
    Total expenses 141,020 1,550,100 3,863,000
    Operating income $17,380 $209,900 $537,000

    Budgeted amounts for July were as follows:
    DOGGY WORLD
    Income statement
    For the month ended July 31, 2011
    Dayton Ohio Companywide
    Revenue 173,400 1,883,000 4,650,000
    Expense:
    Regional manager/headquarters office ---- 64,600 124,000
    Cost of materials 91,902 1,035,650 2,092,500
    Salary expense 41,616 470,750 1,162,500
    Depreciation expense 7,800 87,500 446,000
    Utility expense 4,900 54,600 274,000
    Rent expense 3,400 32,700 169,000
    Total expenses 149,618 1,745,800 4,268,000
    Operating income 23,782 137,200 382,000

    Requirement
    1. Prepare a report for July 2011 that shows the performance of the Dayton store, the Ohio region, and the company as a whole.

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    https://brainmass.com/business/accounting/doggy-world-performance-dayton-389372

    Attachments

    Solution Summary

    The solution provides a breakdown of the performance for the Dayton store, the Ohio store, and the company as a whole for Doggy World.

    $2.19

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