can you please help with question 3.
Final Timed assi( X Connect X S SOAP2DAY X songs to get los X Tate McRae - all X Sell your items X E essay4less.com X + X -> C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... G A + Final Timed assignment i Saved Help Save & Exit Submit Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Total 02:33:48 Company Cloth Leather Sales R 4, 070, 000 R 2, 200, 000 R 1, 870, 000 Variable expenses 1, 969, 000 1, 060, 000 909, 000 Contribution margin 000 'TOT'Z 1, 140, 000 961, 000 Traceable fixed expenses: Advertising 790, 000 400, 000 390, 000 Selling and administrative 590,000 310,000 280, 000 Depreciation 249,000 125, 000 124,000 Total traceable fixed expenses 000 '679'T 835, 000 794, 000 Divisional segment margin 472,000 R 305, 000 R 167,000 Common fixed expenses 400, 000 Operating income R 72,000 Mc Graw Hill Education Type here to search O ENG 11:26 AM US 2020-08-11Final Timed assi( X Connect X S SOAP2DAY X songs to get los X Tate McRae - all X Sell your items X E essay4less.com X + X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... G A Final Timed assignment i Saved Help Save & Exit Submit Top management can't understand why the Leather Division has such a low segment margin when its sales are only 15% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines. The following information is available on the product lines in the Leather Division: Leather Division Product Lines Garments Shoes Handbags 02:33:40 Sales R500, 000 R770, 000 R600, 000 Traceable fixed expenses: Advertising R 90, 000 R122, 000 R178, 000 Selling and administrative R 40, 000 R 45, 000 R 62,000 Depreciation R 29, 000 R 66, 000 R 29, 000 Variable expenses as a percentage of sales 60% 30% 63% Analysis shows that R133,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Product Line Leather Division Garments Shoes Handbags Sales R 167,000 R 500,000 R 770,000 R 600,000 Variable expenses 300,000 231,000 378,000 Mc Graw Hill Education Type here to search ENG 11:26 AM US 2020-08-11Final Timed assi( X Connect X S SOAP2DAY X songs to get los X Tate McRae - all X Sell your items X E essay4less.com X + X -> C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... G A Final Timed assignment i Saved Help Save & Exit Submit Analysis shows that R133,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. 02:33:34 Product Line Leather Division Garments Shoes Handbags Sales R 167,000 R 500,000 R 770,000 R 600,000 Variable expenses 300,000 231,000 378,000 Contribution margin 167,000 200,000 639,000 222,000 Traceable fixed expenses: Advertising 90,000 R R Selling & administrative Depreciation Total traceable fixed expenses 0 90.000 0 0 Product line segment margin 167,000 R 110,000 R 539,000 R 222,000 Common fixed expenses: Variable expenses Divisional segment margin R 167,000 Mc Graw Hill Education Type here to search O ENG 11:26 AM US 2020-08-11Final Timed assignment 0 Saved 4 Help Save & Exit Su bmit 3. Refer to the statement prepared in (1) above. The sales manager wants to run a special promotional campaign on one ofthe product lines over the next month. A marketing study indicates that such a campaign would increase sales ofthe Garments product line by R210,000 or sales ofthe shoes product line by R155,000. The campaign would cost R40,000. a. Compute the increased operating income for these product lines for the expected increased sales. Increased operating income E _ E _ b. Based on the above results, which product line should be chosen? 0 Garments 0 Shoes Mc Graw Hill ( REQM 4 0f 5 Educrlliwi'i - x0 Type hereto search .- O A Q iii u) ) ENG ,' us
