Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Oriole Equipment sells equipment to sports enthusiasts. Doug Oriole, the company's president, just received the following income statement reporting the results of the past year.
Oriole Equipment sells equipment to sports enthusiasts. Doug Oriole, the company's president, just received the following income statement reporting the results of the past year. Baseball Soccer Basketball Total $1,170,000 $3,360,000 $ 2,218.000 $ 6,748,000 Sales revenue Variable cost of goods sold 793,000 2,184,000 1,777,600 4,754,600 107,600 175,200 154,600 437,400 Fixed cost of goods sold Gross profit 269,400 1,000,800 285,800 1,556,000 158,600 537,600 221,800 918,000 Variable operating expenses Fixed operating expenses 74,400 78,400 68,100 220,900 Common fixed costs 56,000 121,000 90,500 267,500 Operating income ($ 19,600) $ 263,800 ($ 94,600) $ 149,600 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g.-5,125 or parenthesis, e.g. (5,125).) Baseball Soccer Basketball $ $ Contribution Margin Variable Expenses Common Fixed Expenses Traceable Fixed Expenses Sales Revenue Segment Margin Operating Income Cost of Goods Sold Operating Expenses $ $ $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started