Question
Forever Memories Company has two divisions and the following information available: a. Net sales were $150,000. $90,000 was attributed to the Cherry Division. b. Variable
Forever Memories Company has two divisions and the following information available:
a. Net sales were $150,000. $90,000 was attributed to the Cherry Division.
b. Variable costs were $80,000. 40% was attributed to the Grape Division.
c. Total separable fixed costs controllable by division managers were $32,000, of which $20,000
applied to the Cherry Division.
d. Total separable fixed costs, not controllable by division managers were $14,000 in the Cherry
Division and $4,000 in the Grape Division.
e. Unallocated costs were $7,000.
Required:
Prepare a contribution approach income statement for the company as a whole and each division.
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