Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you answer this wuestion? Required information [The following information applies to the questions displayed below.] Refer to the data in Exercise AH 6-3. Assume
can you answer this wuestion?
Required information [The following information applies to the questions displayed below.] Refer to the data in Exercise AH 6-3. Assume Annie's Homemade divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for 20% of mobile sales and has a variable expense ratio of 47.6%, refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for 28% of mobile sales and has a variable expense ratio of 42.0%, includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for 52% of mobile sales and has a variable expense ratio of 36.0%, includes pre-purchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales' fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales. Assume the Food Truck segment's total sales can be divided into three segments - Private Venues, Festivals, and Microbreweries-as summarized in the visualizations below: Food Truck Segment Festivals Private Verues Microbrewieries Food Truck Sales and Variable Expenses $6$,000 $60,000 Food Truck Segment Percent of Sales 4. If all three of these segments have the same contribution margin ratio, then: a. What is the total contribution margin for the Private Venues segment (rounded to the nearest dollar)? b. If the company decided to stop seling ice cream at festivals and all else held constant, what would be the impact on profits? c.If the company could increase microbrewery sales by 20%, what would be the impact on profits (rounded to the nearest dollar)? Complete this question by entering your answers in the tabs below. What is the total contribution margin for the Private Venues segment (rounded to the nearest dollar) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started