Contribution measures Maxwella Department Store uses the contribution approach to report performance for each of its three
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Contribution measures Maxwella Department Store uses the contribution approach to report performance for each of its three departments. Below are summarized data for the year just completed.
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Sales Variable costs Contribution margin Fixed expenses Contribution. Division Sporting Womens' Goods Clothing Home Appliances $200,000 $400,000 $800,000 80,000 160,000 500,000 120,000 240,000 300,000 40,000 140,000 140,000 $ 80,000 $100,000 $160,000 REQUIRED Corporate expenses not identifiable with divisions are $200,000. a. Compute the corporate net income for the period. b. For each division compute the contribution per sales dollar.
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