Question
Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 2020, it compiled the following
Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 2020, it compiled the following budgeted data:
High-end Speakers | Personal Computers | Handheld Devices | Total | ||||||||
Sales (in units) | 400,000 | 610,000 | 500,000 | ||||||||
Price (per unit) | $ | 1,500 | $ | 1,310 | $ | 435 | |||||
Variable costs per unit: | |||||||||||
Direct materials | $ | 430 | $ | 360 | $ | 35 | |||||
Direct labour | 100 | 80 | 50 | ||||||||
Overhead | 60 | 70 | 35 | ||||||||
Shipping | 40 | 20 | 10 | ||||||||
Sales commissions | 50 | 30 | 4 | ||||||||
Direct fixed costs: | |||||||||||
Salaries | $ | 75,320,000 | $ | 81,650,000 | $ | 53,160,000 | |||||
Utilities | 50,470,000 | 85,030,000 | 16,490,000 | ||||||||
Depreciation | 72,190,000 | 240,880,000 | 39,880,000 | ||||||||
Common fixed costs: | |||||||||||
Corporate salaries | $ | 44,080,000 | |||||||||
Building depreciation | 36,780,000 | ||||||||||
Legal & accounting | 54,550,000 | ||||||||||
Other | 14,950,000 | ||||||||||
Required:
1. & 2. Prepare a segmented performance report; Compute the contribution margin percentage and segment margin percentage. (Round "Percentage" answers to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).)
3-a. Allocate the common fixed expenses equally to the three segments and prepare a performance report. (Negative amounts should be indicated with a minus sign.)
3-b. This part of the question is not part of your Connect assignment.
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