Koala Ltd has only two divisions: A and B. The following data apply to Division A.

Required 1 Prepare a segment report for Division A that differentiates between the performance of the manager and the performance of the division.
2 Division B’s net revenue is €3 million and its contribution margin is €1.2 million. The segment margin (contribution by division of Division B) is €700 000.
a Determine fixed costs traceable to Division B.
b Determine variable costs of Division B.
3 Koala’s corporate costs unallocated to divisions are €400 000. Determine Koala’s income.

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Fixed costs controllable outside division Net revenues Variable marketing and administrative expenses Total traceable costs Total variable costs 100 000 1 500 000 200 000 1 000 000 600 000