Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

es Total Company Chicago Office Minneapolis Sales Variable expenses Contribution margin $504,000 252,000 100.00% 50.00% $ 168,000 100.00% $ 336,000 100.00% 252,000 Traceable fixed expenses.

es Total Company Chicago Office Minneapolis Sales Variable expenses Contribution margin $504,000 252,000 100.00% 50.00% $ 168,000 100.00% $ 336,000 100.00% 252,000 Traceable fixed expenses. 141,120 office segment margin. 110,880 50.00% 28.008 22.00% 50,400 117,600 87,360 $ 30,240 30.00% 201,600 60.00% 70.00% 134,400 40.00% 52.00% 18.008 53,760 16.008 $ 80,640 24.00% Common fixed expenses not traceable to offices 70,560 Net operating income: $ 40,320 14.008 8.008 3. Assume that sales in Chicago increase by $56,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Sales Variable expenses Contribution margin Segments Total Company Chicago Minneapolis Amount % Amount % Amount $ 560,000 560,000 0.0 0 0.0 0 0.0 Traceable fixed expenses Office segment margin 560,000 0.0 $ 0 0.0 $ 0 0.0 Common fixed expenses not traceable to segments Net operating income $ 560,000 0.0

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

Cma Part 1 Financial Reporting Planning Performance And Control

Authors: Nathan Liao

1st Edition

1545045992, 978-1545045992

More Books

Students also viewed these Accounting questions

Question

Discuss the Hawthorne experiments in detail

Answered: 1 week ago

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago

Question

What are the functions of top management?

Answered: 1 week ago