Assume Annie's Homemade divides its total annual sales of $650,000 into two sales channels: in-store sales and mobile sales. The in- store sales comprise 65% of total sales and the mobile sales account for 35% of total sales. The variable expense ratio is 30% for in- store sales and 40% for mobile sales. Variable expenses are a higher percentage of sales in the mobile sales segment because of various factors, such as price discounts offered to high-volume customers, packaging costs, and incremental fuel costs. Of the company's total annual fixed expenses of $240,000, $10,000 is traceable to in-store sales, $15,000 is traceable to mobile sales, and the remainder are common fixed expenses. The common fixed expenses-the three largest of which include employee salaries ($120,000), equipment depreciation ($40,000), and store rent ($36,000)-would be avoidable only if the company went out of business. Required: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales.into two sales channels: in-store sales and mobile sales. 2. For the mobile sales segment: a. What is the break-even point in dollar sales? b. Assuming an average selling price of $4.50 per serving, what is the break-even point in number of servings (round your answer up to the nearest whole number)? 3. For the in-store segment: a. What is the break-even point in dollar sales (rounded to the nearest dollar)? b. If the in-store segment's unit sales grow by 5% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? Complete this question by entering your answers in the tabs below. Requirement 1 Requirement Requirement Requirement 2a 2b 3a Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales into two sales channels: in-store sales and mobile sales. Sales Variable expenses Contribution margin Requirement 3b Total Company In-Store Mobile
3. For the in-store segment a. What is the break-even point in dollar sales (rounded to the nearest dollar)? b. If the in-store segment's unit sales grow by 5% and all else holds constant, then what would be the impact on profits (round the nearest dollar)? Complete this question by entering your answers in the tabs below. Assuming an average selling price of $4.50 per serving, what is the break-even point in number of servings (round your answer up to the nearest whole number)? 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales into two sales channels: in-store sales and mobile sales: 2. For the mobile sales segment: a. What is the break-even point in dollar sales? b. Assuming an average selling price of $4.50 per serving. What is the break-even point in number of servings fround your answer up to the nearest whole number)? 3. For the in-store segment a What is the break-ven point in dollar sales (rounded to the nearest dollar)? b. If the in-store segment's unit sales grow by 5% and all else holds constant, then what would be the impact on profits frounded to the nearest doilar)? Complete this question by entering your answers in the tabs below. What is the break-even point in doGar sales (rounded to the nearest dollar)? 1. Prepare a contribution format segmented income statement that drides Annie's Homemade's total sales into two sales channeis: in store sales and mobile sales. 2. Far the moblie sales segment: a What is the break-even point in dollar sales? b. Assuming an average selling price of $4.50 per serving. What is the break-even point in niamber of servings fround your ariswer up to the nearest whole number)? 3. For the in-store segment: a. What is the break-even point in dollar sales (rounded to the nearest dollar)? b. If the in-store segment's unit sales grow by 5% and all else holds constant, then what would be the impact on prolits (tounded to the nearest dollar)? Complete this question by entering your answers in the tabs below. What is the break-even point in doliar saless? store sales comprise 65% of total sales and the mobile sales account for 35% of total sales. The variable expense ratio is 30% for in store sales and 40% for mobile sales. Variable expenses are a higher percentage of sales in the mobile sales segment because of various factors, such as price discounts offered to high-volume customers, packaging costs, and incremental fuel costs of the company's total annual fixed expenses of $240,000,$10,000 is traceable to in-store sales, $15,000 is traceable to mobile sales, and the remainder are cornmon fixed expenses. The common fixed expenses-the three largest of which include employee salarles ($120,000), equipment depreciation ($40,000), and store rent ($36,000) - would be avoidable only if the company went out of business. Requirec: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales into two sales channels: in store sales and mobile sales. 2. For the mobile sales segment: a. What is the break-even point in dollar sales? b. Assuming an average selling price of $4.50 per serving. what is the break-even point in number of servings (round your answer up to the nearest whole number)? 3. For the in-store segment: a. What is the break-even point in dollar sales (rounded to the nearest dollar)? b. If the in-store segment's unit sales grow by 5% and alf else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? Complete this question by entering your answers in the tabs below. It the in-store segment's unit sales grow by 5% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? Assume Annie's Homemade divides its total annual sales of $650,000 into two sales channels: in-store sales and mobile sales. The instore sales comprise 65% of total sales and the mobile sales account for 35% of total sales. The variable expense ratio is 30% for instore sales and 40% for mobile sales. Variable expenses are a higher percentage of sales in the mobile sales segment because of various factors, such as price discounts offered to high-volume customers, packaging costs, and incremental fuel costs. Of the company's total annual fixed expenses of $240,000,$10,000 is traceable to in-store sales, $15,000 is traceable to mobile sales, and the remainder are common fixed expenses. The common fixed expenses-the three largest of which include employee salaries ($120,000), equipment depreciation ($40,000), and store rent ($36,000)-would be avoidable only if the company went out of business. Required: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales. into two sales channels: in-store sales and mobile sales. 2. For the mobile sales segment: a. What is the break-even point in doliar sales? b. Assuming an average selling price of $4.50 per serving, what is the break-even point in number of servings (round your answer up to the nearest whole number)? 3. For the in-store segment a. What is the break-even point in dollar sales (rounded to the nearest dollar)? b. If the in-store segment's unit sales grow by 5% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? Complete this question by entering your answers in the tabs below. Prepare a contribution format segmented income statement that divides Annie's Homemade's total sales into two sales channels: in-store sales and mobile sales. 1 Prepare a contribubon format segmented income statement that divides Anrie's Honemade's total sales into two sales channets in-store sales and moble sales. 2. For the mobile sales segment a. What is the break even point in dollat salks? b. Assuming an average selling paice of $4,50 per serving, what is the break-even point in number of servings fround your answer up to the nearest whole mamber)? 3 For the in-store segment: a. What is the break-even point in dollar sales (rounded to the nevarest dollar)? b. If the ir.store segment's unit sales grow by 5% and all eise holds constant, then what would be the impact on profits (rounded to the nearest doliar)? Complete this question by untering your answers in the tabs below. Prepare a contribution format segmented income statement that divides Annie's Homemades total sales inte two sales channelst in-store saies and mobile sales
