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Bag Company has the following data needed to complete the operating result for the year just ended: a. Division 1 has 40 percent variable cost
Bag Company has the following data needed to complete the operating result for the year just ended: a. Division 1 has 40 percent variable cost ratio. b. Division 1 and Division 2 average operating assets are $200,000 and $20,000 respectively. c. Common fixed expenses total $290,000 are allocated to each division base on each division sales revenues with overall net operating income of $40,000. d. The company reported a total sale of $1,000,000 from Division 1 and Division 2. e. The company required a minimum rate of return on investment is 15% from each division. Required complete the table below: Instruction: DO NOT put a "$" dollar sign, a "," comma sign, and "%" percent sign on your answer. Division 1 Division 2 Sales Less Variable expenses 240000 Contribution margin 320000 Less Traceable fixed expenses 150000 200000 Division segment margin 210000 120000 Less Common fixed expenses Net operating income Rate of return on investment Divisions' required return on investment
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