Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part III Dragon Inc. is a manufacture of kitchen equipments and currently has two departments: oven department and kitchen fan department. The company's contribution format
Part III Dragon Inc. is a manufacture of kitchen equipments and currently has two departments: oven department and kitchen fan department. The company's contribution format income statement is as follows Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income The oven department has sales of $4,310,000 and variable expenses of $1,145,000. The remaining sales and variables expenses are for the kitchen fan department. There are $670,000 fixed expenses traceable to the oven department and $480,000 fixed expenses traceable to the kitchen fan department. The remaining are common fixed expenses $6,257,000 $2.365,000 $3,892,000 $1,320,000 $2,572,000 Required 1) Prepare contribution format segmented income statements for the two departments. (5 Marks) Based on the calculation above, what suggestion to the company would you like to make? (2 Marks) 2)
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