Question
Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Part 1 Compute
Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows.
Part 1
Compute the missing amounts.
Operating Data | Womens Shoes | Mens Shoes | Childrens Shoes | ||||||
Contribution margin | $312,120 | $ | (3) | $208,080 | |||||
Controllable fixed costs | 115,600 | (4) | (5) | ||||||
Controllable margin | (1) | 104,040 | 109,820 | ||||||
Sales | 693,600 | 520,200 | (6) | ||||||
Variable costs | (2) | 369,920 | 289,000 |
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Part 2
Prepare a responsibility report for the Womens Shoes Division assuming (1) the data are for the month ended June 30, 2020, and (2) all data equal budget except variable costs which are $5,780 over budget.
HORATIO INC. Womens Shoe Division Responsibility Report For the Month Ended June 30, 2020 | |||||||
Difference | |||||||
Budget | Actual | Favorable Unfavorable Neither Favorable nor Unfavorable | |||||
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs | $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs | FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs | FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs | FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs | $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable |
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