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Please help with unallocated cost and company profit! Segment margins Following is the information on Paragon Company's three product lines: Product Line 1 Product Line
Please help with unallocated cost and company profit!
Segment margins Following is the information on Paragon Company's three product lines: Product Line 1 Product Line 2 Product Line 3 Revenue $7,160,000 $1,900,000 $4,200,000 Variable cost percentage of sales 60% 50% 40% Other costs $859,200 $237,500 $693,000 Allocated avoidable corporate costs $349,000 $156,000 $698,000 Allocated unavoidable corporate costs $570,800 $206,500 $24,000 Construct a segment margin statement for Paragon Company. Be able to discuss why the segment margins reported for an organization unit must be interpreted carefully. Product Line 1 Product Line 2 Product Line 3 Total Revenue * $ 7,160,000 $ 1,900,000 $4,200,000 $ 13,260,000 Variable costs 4,296,000 950,000 1,680,000 6,926,000 Contribution margin 2,864,000 950,000 2,520,000 6,334,000 Other costs 859,200 237,500 693,000 1,789,700 Segment margin 2,004,800 712,500 1,827,000 4,544,300 Allocated avoidable cos 349,000 156,000 698,000 1,203,000 Income $ 1,655,800 $ 556,500 $ 1,129,000 3,341,300 Unallocated costs OX Company profit $ OXStep by Step Solution
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