D. H. 3 Suppose that you are working as a junior financial controller for FashionMTVI Department Stores Ltd. The firm has operated a 4 chain of retail stores in the two metropolitans of Austraia. The store managers are authorised to make decisions to maintain and 5 improve the operation of their local store. The firm has followed a decentralised structure with two main divisons: Melbourne and 6 Sydney. In addition, Sydney has two sub-divisions: Sydney CBD and Parramatta. The sales revenue and costs (in S'000s) for the 7 two main divisions for the most recent year are as follows 8. 6. 10 Sydney Division Melbourne division 11 in S'0obs in S'000s 12 Sydney CBD Parramatta All stores 13 14 Sales revenue 25,000 6,900 39,000 15 Variable expenses 16 Cost of merchndise sold 19,000 5,800 23,000 Sales persornel wage Sales commission Urilities 17 1,250 900 2,700 38 270 120 420 19 450 180 750 20 Other 360 105 470 21 Fixed expenses Depreciation for buildings Depreciation for famitur es IT services 22 750 950 270 23 420 150 550 24 225 90 260 Sheett Ready Type here to search Cip CO 144 %23 24 3. & 4. WE Y. sDF|| H 60 00 AutoSave MTVI spreadsheet - Protected View . P Sranch File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enab 123 G. 23 Depreciation for furnitures 420 150 550 24 IT services 225 90 260 25 26 Ware bouse Store insurance 620 180 810 270 75 330 27 Property taxes Store supervisor wages Security expense 240 60 310 28 1,200 300 1,900 890 29 240 90 30 31 32 The following fixed expenses are controllable at the store level Depreciation for firnitures, IT services, warehouse, insurance and 33 security 34 35 36 37 The following fixed expenses are traceable to divisions or stores, but controllable only at the compar level: Depreciation for 38 buildings, property taxes and store supervisor wages. FashionMTVI Department Stores incurs common fixed expenses of $1 300 39 000, which are not allocated to the two divisions 40 41 42 43 Required: 44 Sheet1 Ready O Type here to search IC3 40 144 23 3. 4. 5. 8 60 (O AutoSave MTV spreadsheet - Protected View . File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be carefu-iles from the Internet can contain virses. Unless you need to edit, it's saler to stay in Protected View. Enable Editing 123 econy 34 35 36 37 The following fxed expenses are traceable to divisions or stores, but controllable only at the company level: Depreciation for 38 buldings, property taxes and store supervisor wages FashionMTVI Department Stores iincurs commen fised expenses of $1 300 39 000, which are not allocated to the two divisions 40 41 42 43 Required: 44 45 1. Pepare a performance report using the contribution margn format to show the fotal profitability for the company, 46 the profitability for the two stores that are part of the Sydney division, and the profitability of the Melbourne division 47 as a whole. (10 marks) 48 49 2. As your role of a financial controller, explain to the managing director on bow this report could be used to manage the company 50 (S marks 51 (Please wrine yonr aumrer le the quetien 2) bere: 52 53 154 Sheett Reay O Type here to search 144 4. R Y. sD|F||G ||H K