allows you to use several cloud-backed services. You get to provided to you under the Microsoft Services Agreement. Learn more C20 G H 1 GIGO Computers has two divisions that manufacture computing devices. Below are the results from last year. Laptop Tablet Total Sales Revenue 14,500,000.00 $ 36,000,000.00 $ 50,500,000.00 Variable Cost of Goods Sold 9,500,000.00 $ 23,400,000.00 $ 32,900,000.00 Fixed Cost of Goods Sold 1,400,000.00 $ 1,880,000.00 $ 3,280,000.00 Gross Profit 3,600,000.00 $ 10,720,000.00 $ 14,320,000.00 8 Variable Operating Expenses 1,850,000.00 $ 5,760,000.00 $ 7,610,000.00 9 Fixed Operating Expenses 900,000.00 $ 840,000.00 $ 1,740,000.00 10 Common Fixed Costs 1,200,000.00 $ 1,300,000.00 $ 2,500,000.00 11 Operating Income 350,000.00 $ 2,820,000.00 $ 2,470,000.00 12 13 Meng Wanzhou, the President of GIGO is not happy that the laptop division is losing money. 14 a) Prepare a segment margin income statement. Fixed cost of goods sold, and fixed operating expenses can be traced to each division. (6 marks) 15 b) Should Meng keep or close the laptop division? (1 mark) 16 17 18 19 20 21 22 E Formula Sheet MCQ Segment Evaluation 7 Marks Cash Budget - 16 Marks + Calculation Mode: Automatic Sheet Number Workbook Statistics ASUS esc f1 f2 f4 f6 f7 13 f5 EX 8:3 X a # % & 2 3 4 5 6