Question
Charlie Company has three divisions - Alpha, Baker and Tango. You have the following information: Total Sales: $1,600,000 -Alpha 40% of total; Baker 25%; Tango
Charlie Company has three divisions - Alpha, Baker and Tango. You have the following information:
Total Sales:$1,600,000 -Alpha 40% of total; Baker 25%; Tango 35%
Gross Profit:Alpha35% of sales; Baker 30% of sales; Tango 25% of sales
Overhead costs: $500,000 - Alpha $185,000; Baker $115,000; Tango $125,000; non-traceable 75,000.
make a segment-based income statement for Charlie Company arriving at the divisional operating profit and the company total operating profit.
b.Calculate the amount of sales needed for each division to meet the goal of $50,000 operating profit per division. Calculate the amount of sales needed for the company as a whole to meet a goal of $150,000 operating profit in total.
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