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:13 Marks] Sachiko Company has two divisions: C and D. During the yearjust ended, Division C had a segment margin of $9,000 and variable costs
:13 Marks] Sachiko Company has two divisions: C and D. During the yearjust ended, Division C had a segment margin of $9,000 and variable costs equal to 70% of sales. Traceable xed costs for Division D were $19,000. Sachiko Company as a whole had a contribution margin of 40%, a segment margin of $25,000, Common costs of $30,000 and sales of $200,000. Required: 3) [10 Marks] Given this data, prepare a segmented income statement in the contribution format showing in columns the Total as well as amounts :or Division C and D (including percentages). Make sure that you properly label the segmented income statement. Only the Segmented income Statement will be marked. Your calculations will not be marked. a) [2 Marks] The Manager of Division D suggests that if they sell a higher quality product, then Division D can increase sales by $75,000. In order to achieve these results, however, traceable fixed expenses for Division D would increase by $20,000. Do you recommend this course of action? Support your answer with calculations. 3) [1 Mark] In deciding whether to keep or eliminate a particular segment of the business, is allocating a portion of a common xed cost to that segment of the business helpful in making that decision? Provide a one sentence explanation
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