Question
.Fog City Retail operates a retail store in Phoenix, Las Vegas, and Portland. The following information relates to the Phoenix facility: The store sold 65,000
.Fog City Retail operates a retail store in Phoenix, Las Vegas, and Portland. The following information relates to the Phoenix facility:
The store sold 65,000 units at $18.00 each, after having purchased the units from various suppliers for $12.50. Phoenix salespeople are paid a 5% commission based on gross sales dollars.
Phoenix's sales manager oversees the placement of local advertising contracts, which totaled $54,000 for the year. Local property taxes amounted to $14,500.
The sales manager's $65,000 salary is set by Phoenix's store manager. In contrast, the store manager's $134,000 salary is determined by Fog City's vice president.
Phoenix incurred $6,800 of other noncontrollable costs.
Nontraceable (common) corporate overhead totaled $68,000.
Fog City's corporate headquarters is located in Portland, and the company uses responsibility accounting to evaluate performance.
Required:
Prepare a segmented income statement for the Phoenix store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin.
and explain for me why do we ignored the nontraceable costsjQuery22409549107176553018_1596785705146?
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