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Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 20X5, 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 20X5, it compiled the following budgeted data High-End Speakers 420,000 Personal Handheld Devices Computers 630,000 Total Sales (in units) Price (per unit) Variable costs per unit Direct materials 520,000 1,500 $ 1,330 $ 455 360 130 120 70 80 410 110 70 50 60 $ $ 70 25 15 6 2 Direct labour Overhead Shipping Sales commissions Direct fixed costs: $ 85,610,000 $57,830,000 17,940,000 43,380,000 Salaries $ 80,100,000 Utilities 53,670,000 76,770,000 67,030,000 147,230,000 Depreciation Common fixed costs: Corporate salaries Building depreciation Legal & accounting Other $ 47,960,000 40,010,000 59,340,000 36,260,000 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%).) Answer is not complete. PRAIRIE ELECTRONICS Segment Performance Report Profit Centres High-End Speakers Personal Computers Handheld Devices Total Company $ 236,600,000 Sales revenues 1,704,500,000 630,000,000 837,900,000 Less: Variable costs: $ $ 36,400,000 $435,400,000 Direct materials 226,800,000 172,200,000 Direct labour 46,200,000 81,900,000 13,000,000 141,100,000 75,600,000 7,800,000 112,800,000 Overhead 29,400,000 Shipping 21,000,000 44,100,000 3,120,000 68,220,000 Sales commissions 25,200,000 50,400,000 1,040,000 76,640,000 $ 294,000,000 $ $61,360,000 $ 834,160,000 Total variable expenses 478,800,000 $ 175,240,000 Contribution margin $ 870,340,000 336,000,000 359,100,000 Less: Direct fixed costs Salaries Utilities Depreciation Total fixed expenses $ $ $ 0 Segment margin Less: Common fixed costs Corporate salaries Building depreciation Legal & accounting Other Total common fixed costs $ 0 Contribution margin % Segment margin % 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.) PRAIRIE ELECTRONICS Profit Centres Personal Computers High-End Speakers Handheld Devices Total Company Less: Common fixed expenses Allocated portion Net income (loss)
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