Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 $ OX

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

1.How inflation and deflation create winners and losers

Answered: 1 week ago