Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Duncan Inc. has two divisions, Parker and Ginobili. Following is the income statement for the past month: Parker Ginobili Sales $ 636,900 $ 333,700 Variable

Duncan Inc. has two divisions, Parker and Ginobili. Following is the income statement for the past month:

Parker

Ginobili

Sales

$

636,900

$

333,700

Variable Costs

202,900

169,100

Contribution Margin

$

_____________

$

___________

Fixed Costs (allocated)

215,900

151,200

Profit Margin

$

____________

$

_________

What would Duncan's profit margin be if the Ginobili division was dropped?

If a loss, indicate with a - (negative sign) before your answer. Example: a loss of $1,000 would be answered -1,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Keys To Reading An Annual Report

Authors: George T. Friedlob, Ralph E. Welton

4th Edition

ISBN: 0764139150, 978-0764139154

More Books

Students also viewed these Accounting questions

Question

3. Define the attributions we use to explain behavior

Answered: 1 week ago