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NS 6.870 000 TOTAL MARKS Question 4 The following information relates to the beverage division of Namibia Wholesalers. 35 (12 marks) Sales revenue Uncontrollable
NS 6.870 000 TOTAL MARKS Question 4 The following information relates to the beverage division of Namibia Wholesalers. 35 (12 marks) Sales revenue Uncontrollable fixed costs traceable to the division Allocated corporate overhead Controllable fixed costs traceable to the division 2040 000 885 000 1 680 000 1 500 000 900 000 2225 000 (600 000) 750 000 Marks Sub- total Total Motor vehicles Buildings Fixtures and fitting Trade payables Trade receivables The variable costs take up to 35% of sales. REQUIRED: 6.1. Compute the following for the Beverage Division: 6.1.1 Segment contribution margin; 6.1.2 Controllable profit margin; 6.1.3 Segment profit margin. Calculate the Beverage Division's return on investment that should be 6.2. used to measure the management of the division's performance TOTAL MARKS Question 5 222 9 246 12 12 (8 marks)
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