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

Fixed costs controllable outside division ...................................................     €100,000 

Net revenues ..................................................................................................... 1,500,000 

Variable marketing and administrative expenses .....................................      200,000 

Total traceable costs ........................................................................................ 1,000,000 

Total variable costs ............................................................................................  600,000 

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.