1 Question #3: CVP Analysis, Segmented Reporting & Incremental Analysis 2 4 Parts 3 18 marks) Bulldog Shirts & Stuff Company sell t-shirts and blankets with logos to various groups including sports team, fund raisers and corporate customers to name a few. They are a growing company and are trying to get a better understanding of their business operations and have asked for your assistance. They have provided the following Information: Units Selling price Variable costs Traceable fixed costs Common fixed costs T-shirts 20,000 15.00 9.00 90,000 18,000 Blankets 15,000 25.00 17.25 100,000 2,000 Prepare a segmented income statement for Bulldog Shirts & Stuff Company for the year 2020. (6 marks) Bulldog Shirts & Stuff Company Segmented Income Statement tha di Dmbor 150 a. Prepare a segmented income statement for Hulldog Shirts & Stuff Company for the year 2020. G marks) Bulldor Shirts & Stuff Company Segmented Income Statement For the year ending December 31, 2020 17 18 79 20 21 22 72 24 25 26 Z T-shirts Blankets Working Space B H 39 30 41 b. Calculate the breakeven point in dollars for the T-shirts division and Blankets division using the same data. (6 marks) ANWSER T-shirts division contribution marginali T shirts division breakeven poirit in dollars ANWSER 4.4 45 46 17 78 9 Working Space Blanket division contribution margin ratio Blanket division breakeven point in dollars ANWSER ANWSER Working Space Cover Page Formula Sheet Multiple Choice Cash Budget CVP Seg Renart & Inc Anaby M 56 7 3 c Awarring Bulldoy: Shirts & Stuff Company does have excess capacity, they need your assistance in deciding whether to accept a special order for 100 blankets from Kingsway Community Soccer Association (KCSA). This is a non-profit organization which organizes soccer for children throughout the year and they want the blankets for participation gifts. Bulldog has provided you a copy of KCSA's proposal for you to assist them in make the decision on whether to accept this order or not. Sales per unit Variable costs per unit Traceable Fixed costs Regular Order 25.00 17.25 100,000 Special Order 15.00 6.00 100,000 Prepare an incremental analysis to determine whether Bulldog should accept the special order or not. (1 marks) Working Space (incremental Analysis for Special Order) Net accept the special Regular KCSA Increase / order from Kingsway Order Order (Decrease) Community Soccer Cover Page Formula Sheet Multiple Choice Cash Budget CVP Seg Report & Iner Analysis Flex Buda fode: Automatic Workbook Statistics 82 Pancrementar amatysis uetermine whether DUTY STUUR DCLEPL the spect OTOCICA TKL Tanks Worldng Space incremental Analysis for Special Order) Net accept the special Regular KESA Increase order from Kingsway Order Order (Decrease) Community Socor Units Association? (Yes. De No ANSWER 92 233 34 5 5 Total Working Space 3. Comment on whether Bulldog should take the special order from KCSA or not based only on qualitative factors. Provide at least two qualitative factors. (2 marks) 35 d. Comment on whether Bulldog should take the special order from KCSA or not based only on qualitative factors. Provide at least two qualitative factors. (2 marks)