Armadale Company manufactures and sells three video game consoles: The Alpha X, the Beta Y, and the Gamma Z game systems. Information for each product is shown below: Alpha 100.00 $ Beta 80.00 $ Gamma 50.00 $ 5 Sales price 6 Sales volume (units) 2,500 $ 10,000 5,000 60.00 $ 40.00 $ 90,000 $120,000 $ 15.00 7 Variable cost per unit $ 80,000 8 Annual traceable fixed expenses $450,000 Alpha Beta Gamma Total 9 10 Total Fixed Expenses for Armadale Company 11 12 WORKSPACE ONLY: NO MARKS FOR YELLOW AREA 13 Sales 14 Variable costs 15 Contribution Margin 16 Traceable fixed expenses 17 Segment Margin 18 Common fixed expenses 19 Net Operating Income the flowing ut 1. What the two chroducine mural 4. Wichment should be dropped, wybied on quantitative analysis (1 mark) Alghe Aloha Det Cam Gamma zu Washer in dollars of each product line mark What are the common fiud expenses of the of the company as a whole martes) Aicha Beta Gamina **SCROLL DOWN FOR PAT** the comment fonduct, which we women PART The sales manager of Armadale company in the sales of feta would increase they end funds on avering companii prediction is calculate the following 4 marts The sales manager of Armadale Company thinks that sales of Beta would increase if they spend funds on an advertising campaign. Assuming his prediction is accurate, calculate the following: (4 marks) Increase in Beta sales 10% Amount spent on advertising 12,000 V Increase in contribution margin Net Increase (decrease) in Income Would you recommend that the sales manager proceed with the advertising campaign? (Yes or No) Explain why or why not they should proceed with the campaign. LLLL LLULUL 147 B E F 1 Question 5 Segmented Income Statement (14 Marks) 2 Armadale Company manufactures and sells three video game consoles: The Alpha X, the Beta Y, and the Gamma Z game systems. Information for each product is shown below: 3 4 Alpha 100.00 $ Beta 80.00 $ $ Gamma 50.00 in 10,000 5,000 2,500 $ 15.00 60.00 $ 40.00 $ 90,000 $ 120,000 $ $ 80,000 Sales price 6 Sales volume (units 7 Variable cost per unit 8 Annual traceable faxed expenses 9 10 Total Fed Expenses for Armadale Company 11 12 WORKSPACE ONLY: NO MARKS FOR YELLOW AREA 13 Sales Variable costs 15 Contribution Marcin 16 Traceable fred expenses 17 Sement Margin 38 Common foed expenses $450,000 Alpha Beta Gamma Total B Cover Sheet 01 02 03 04 os Q6 Bonus Formulas + D What is the roof each product line) marks: Alpha Beta Gamma d. Which segment should be dropped, If any based on quantitative analysis alone? (1 mark) Alpha D. Beta Gamma d. None, ali segments should be kept What is the magnoliach product line marks) What are the common fixed expenses of the company as a whole? (2 marks) Alpha Beta Game Layer of product, which we should **SCHOLL DOWN FOR PART 3 PARTB The sales manager of Armadale company thinks that sales of Beta would Increase they spend funds on an advertising campaign. Assuming his prediction is accurate, calculate the following 14 marts) ION H F G PART B: The sales manager of Armadale Company thinks that sales of Beta would increase if they spend funds on an advertising campaign. Assuming his prediction is accurate, calculate the following: (4 marks) Increase in Beta sales 10% Amount spent on advertising 12,000 Increase in contribution margin Net Increase (decrease) in income Would you recommend that the sales manager proceed with the advertising campaign? (Yes or No) Explain why or why not they should proceed with the campaign
