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Problem 1: (Segmented Income Statement) Metro Retail operates a retail store in Manila, Las Pinas, and Pateros. The following information relates to the Manila facility:
Problem 1: (Segmented Income Statement) Metro Retail operates a retail store in Manila, Las Pinas, and Pateros. The following information relates to the Manila facility: The store sold 65,000 units at P18.00 each, after having purchased the units from various suppliers for P12.50. Manila salespeople are paid a 5% commission based on gross sales dollars. Manila's sales manager oversees the placement of local advertising contracts, which totaled P54,000 for the year. Local property taxes amounted to P14,500. The sales manager's P65,000 salary is set by Manila's store manager. In contrast, the store manager's P134,000 salary is determined by Metro's vice president. Manila incurred P6,800 of other non-controllable costs. Non-traceable (common) corporate overhead totaled P68,000. Metro's corporate headquarters is located in Pateros, and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income statement for the Manila store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin
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