Blue Jay Way Travel Agency is a profit centre within a large tourism company. The following is the financial information for the agency for 2015 and 2016. Review the table and answer the related questions. 2016 2015 Tour Revenue $600,000 $700,000 Distributed Operating Expenses Payroll and Related Expenses $157,000 $250,000 Booking Fees $43,000 $50,000 A) Calculate the departmental income and departmental income margin for 2015 and 2016. Round to two decimal places. b) Comment on the change in departmental income and departmental income margin from 2015 to 2016. C) Calculate booking fees as a percentage of tour revenue for 2015 and 2016 and comment on the change, if any. In addition, calculate labour cost margin for 2015 and 2016 and comment on the change, if any. Use this information to give a possible reason for the change in departmental income margin from 2015 to 2016.

Blue Jay Way Travel Agency is a profit centre within a large tourism company. The following is the financial information for the agency for 2015 and 2016. Review the table and answer the related questions. 2016 2015 Tour Revenue $600,000 $700,000 Distributed Operating Expenses Payroll and Related Expenses $157,000 $250,000 Booking Fees $43,000 $50,000 A) Calculate the departmental income and departmental income margin for 2015 and 2016. Round to two decimal places. b) Comment on the change in departmental income and departmental income margin from 2015 to 2016. C) Calculate booking fees as a percentage of tour revenue for 2015 and 2016 and comment on the change, if any. In addition, calculate labour cost margin for 2015 and 2016 and comment on the change, if any. Use this information to give a possible reason for the change in departmental income margin from 2015 to 2016.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...

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