Question
21. Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Talbot Heather Total Sales $ 260,000 $
21.
Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month:
| Talbot | Heather | Total | ||||||||
| Sales | $ | 260,000 | $ | 260,000 | $ | 520,000 | ||||
| Variable Costs | 234,000 | 78,000 | 312,000 | |||||||
| Contribution Margin | 26,000 | 182,000 | 208,000 | |||||||
| Fixed Costs (allocated) | 96,700 | 96,700 | 193,400 | |||||||
| Profit Margin | $ | (70,700 | ) | $ | 85,300 | $ | 14,600 | |||
What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable?
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Safety Auditing A Management Tool
Authors: Donald W. Kase
1st Edition
0471289035, 978-0471289036
