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Henry Park Market sell groceries at affordable prices to both wholesale and retail customers. The business has 4 stores: Glen Waverley, Clayton, Moorabbin and Caufield.
Henry Park Market sell groceries at affordable prices to both wholesale and retail customers. The business has 4 stores: Glen Waverley, Clayton, Moorabbin and Caufield. The owners started Glen Waverley branch first then extended to the Clayton store. Recently the business added the other two locations: Caufield and Moorabbin. Since COVID, both types of customers can order online. The cost of dealing with online customers is part of the common cost, as well as marketing, finance and accounting cost. At the moment, the common cost is allocated equally between 4 stores. Below is the performance report from the 4 different stores for the past year: Glen Waverley Clayton Moorabbin Caufield Total Sales $2,600,000 $1,040,000 $250,000 $550,000 $4,440,000 Divisional Variable Cost $1,300,000 $250,000 $100,000 $200,000 $1,850,000 Divisional Fixed Cost $300,000 $250,000 $100,000 $250,000 $900,000 Divisional Contribution Common Costs $150,000 $150,000 $150,000 $150,000 $600,000 Profit 31a) Calculate the divisional contribution for Moorabbin store only (1 mark)
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