Allocated on the basis of sales Taka.

The company is a retail organization that sells a single product. The product is sold in three districts, as shown above. Additional information on the company follows:

(a) The sales and administrative offices are centrally located being about the same distance from each district.

(b) Each district specifies on the sales order what shipping method is to be used (by truck, rail, or air). All goods are shipped from a central warehouse. Shipping is a variable cost, and it is traceable to the districts; differences in amounts above are reflective of the difference shipping methods used.

(c) All salespersons are paid a base salary of Tk.2,000 per month, plus a commission of 6% of sales. There are 6 salespersons in District A, 5 in District B, and 4 in District C.

(d) Each district manager must arrange his or her own district's advertising program. The national advertising is provided by the central office.

(e) The variable costs of processing orders, which have been included in the "Central office administrative expenses" above, amount to Tk.25,000. During March, District A had 3,000 orders. District B had 1,500 orders, and District C had 500 orders. The remainder of the "Central office administrative expenses" are fixed and relate to general administrative assistance provided to all parts of the organization.

(f) The warehouse contains 160,000 square feet of storage space. District A uses 60,000 square feet, District B uses 80,000 square feet, and District C uses 20,000 square feet.

Required:

(i) Garth Hansen, the president, has asked that the company's income statement be redone using the contribution format, which he heard about at a recent industry convention. Prepare the income statement as requested by Mr. Hansen. Show both an Amount and a Percent column for the company in total and for each district, (carry computations to one decimal place.)

(ii) Compute the contribution margin per order for each district. What problems does this computation suggest?

(iii) The manager of District B would like to spend an extra Tk.25,000 next month in a special promotional campaign. If sales increase by Tk.100,000 as a result, would the expenditure be justified? No additional warehouse space would be required.

(iv) Analyze the data in the statement you prepared in (i) above. What points should be brought to the attention of management?

5) Assume that in 3) above additional warehouse space is required, how should Division B manager be willing to pay for additional warehouse space to be indifferent on whether sales increase by Tk100 000 or do not increase by a Tk100 000.

6 ) Assume that sales and variable expenses increased by 50 %, the other expenses remain the same. How would it change the overall performance of the firm? Redo the overall segmented income statements

I need help for this question please it has part

Allocated on the basis of sales Taka. The company is a retail organization that sells a single product. The product is sold in three districts, as shown above. Additional information on the company follows: (a) The sales and administrative offices are centrally located being about the same distance from each district. (b) Each district specifies on the sales order what shipping method is to be used (by truck, rail, or air). All goods are shipped from a central warehouse. Shipping is a variable cost, and it is traceable to the districts; differences in amounts above are reflective of the difference shipping methods used. (c) All salespersons are paid a base salary of Tk.2,000 per month, plus a commission of 6% of sales. There are 6 salespersons in District A, 5 in District B, and 4 in District C. (d) Each district manager must arrange his or her own district's advertising program. The national advertising is provided by the central office. (e) The variable costs of processing orders, which have been included in the "Central office administrative expenses\" above, amount to Tk.25,000. During March, District A had 3,000 orders. District B had 1,500 orders, and District C had 500 orders. The remainder of the \"Central office administrative expenses\" are fixed and relate to general administrative assistance provided to all parts of the organization. (f) The warehouse contains 160,000 square feet of storage space. District A uses 60,000 square feet, District B uses 80,000 square feet, and District C uses 20,000 square feet. Required: (i) Garth Hansen, the president, has asked that the company's income statement be redone using the contribution format, which he heard about at a recent industry convention. Prepare the income statement as requested by Mr. Hansen. Show both an Amount and a Percent column for the company in total and for each district, (carry computations to one decimal place.) (ii) Compute the contribution margin per order for each district. What problems does this computation suggest? (iii) The manager of District B would like to spend an extra Tk.25,000 next month in a special promotional campaign. If sales increase by Tk.100,000 as a result, would the expenditure be justified? No additional warehouse space would be required. (iv) Analyze the data in the statement you prepared in (i) above. What points should be brought to the attention of management? 5) Assume that in 3) above additional warehouse space is required, how should Division B manager be willing to pay for additional warehouse space to be indifferent on whether sales increase by Tk100 000 or do not increase by a Tk100 000. 6) Assume that sales and variable expenses increased by 50 %, the other expenses remain the same. How would it change the overall performance of the firm? Redo the overall segmented income statements I need help for this question please it has part