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here is another photo of the first image you couldnt see Severo SA of Sao Paulo, Brazil, is organized into two divisions. The company's contribution
here is another photo of the first image you couldnt see
Severo SA of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement in terms of the Brazilian currency, the real R) for last month is given below . Total Com 4.re. 1. 101,00 Division Goth Leather 2.703.00 1.970,000 1 000 10, Sales Variable penes Contribution sari Treble i penses Advertising Selling stative Depreciation Total traceable de 4140 90,000 0.000 24,00 1,629.00 472, LO 400,000 110,000 12 1, 35.000 0,000 200, 12 795,00 162,00 Confident eriting Top management can understand why the Leather Division has such a low segmenting when its sales are only 15 than sales in the Cloth Division As one step in Wolating the problem, management hos directed that the other Division be further Semented into product lines. The following information is valable on the product lines in the Leather Division Christi 00 17. Sales Tractat Santri terec lass 12.00 . . Analysis shows that of the chosen und in to the des Retired Analysis shows that R133,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Product Line Leather Division Garments Shoes Handbags R R R R 0 0 0 0 Traceable foxed expenses Total traceable foxed expenses 0 0 OR 0 OR OR 0 Common fixed expenses R 0 Saved 2. Management is surprised by the handbag product line's poor showing and would like to have the product line segmented by market. The following information is available about the markets in which the handbag line is soldi Handball Markets Domestic Foreign R350,000 R250,000 Sales Traceable fixed expenses Advertising Variable expenses as a percentage of sales R 50,000 48x 128,000 B4 All of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which the product is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined as markets Sales Market Domestic Handbags Foreign R R R 0 0 0 Traceable fixed expenses OR OR Common fuced expenses Total common fixed expenses 0 R 0 Step by Step Solution
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