Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2020 was a difficult year for Books R' Us who reported a $2,000,000 net loss. The company has two segments: Physical Stores and Online,

image text in transcribedimage text in transcribed

2020 was a difficult year for Books R' Us who reported a $2,000,000 net loss. The company has two segments: Physical Stores and Online, both impacted by COVID-19. Data for 2020 for each segment are below. Physical Stores: Sales-$4,000,000 Traceable fixed costs - $1,500,000 Online: Sales-$6,000,000 Traceable fixed costs - $1,200,000 Common fixed costs related to the corporate headquarters are $2,240,000. During the lockdowns, the company had to close its physical stores for two months. Because of intense competition, Books 'R Us also reduced its sales prices for online purchases. For the year, the contribution margin ratio for online sales was half of what it was for the physical stores. What was the online segment's contribution margin ratio for 2020? Enter as a whole number, ex: 60 Data concerning three of Kilmon Corporation's activity cost pools appear below: Activity Cost Pool Total Cost Assembling products Designing products Setting up batches $ $ 285,300 $1,312,535 25,200 Total Activity 8,440 assembly hours 7,642 product design hours 690 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Assembling products Designing products per assembly hour per product design hour Setting up batches per batch set-up

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Information for Decision-Making and Strategy Execution

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

6th Edition

137024975, 978-0137024971

More Books

Students also viewed these Accounting questions

Question

Find each sum or difference. -17 + 22

Answered: 1 week ago