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Giant Chef Equipment Company is organized into two divisions commercial sales and home products. During June, sales for the commercial sales division totaled $ 1
Giant Chef Equipment Company is organized into two divisionscommercial sales and home products. During June, sales for the commercial sales division totaled $ and its contribution margin ratio averaged percent. Sales generated by the home products division totaled $ and its contribution margin ratio averaged percent. Monthly fixed costs traceable to each division are $ Common fixed costs for the month amount to $
Required:
a Prepare the Giant Chefs responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole.
b Compute the dollar sales volume required for the Home Products Division to earn a monthly responsibility margin of $
c A marketing study indicates that sales in the home products division would increase by percent if advertising expenditures for the division were increased by $ per month. Calculate the increase or decrease in responsibility margin.
c Would you recommend this increase in advertising?Complete this question by entering your answers in the tabs below.
Req C
Prepare the Giant Chef's responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole.
tableGIANT CHEF EQUIPMENT COMPANYResponsibility Income StatementFor JuneEntire Company,tableCommercial SalesDivisiontableHome ProductsDivisionPercent,,,Percent,,,PercentSalesVariable costs,,,,Contribution margin,$$$Fixed costs traceable to product divisions,,,,Division responsibility margin,$$$Common fixed costs,,,,Operating Income,$ PLEASE FILL OUT ENTIRE CHART INCLUDING PERCENTAGES!!! THANK YOU!
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