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Procter & Gamble (P&G) has three segments: Beauty, Health, and Home Care. The following information is provided for 2023: Beauty: Sales $800,000, Variable Costs $500,000,
Procter & Gamble (P&G) has three segments: Beauty, Health, and Home Care. The following information is provided for 2023:
- Beauty: Sales $800,000, Variable Costs $500,000, Fixed Costs $200,000
- Health: Sales $600,000, Variable Costs $300,000, Fixed Costs $150,000
- Home Care: Sales $500,000, Variable Costs $250,000, Fixed Costs $100,000
Required:
- Prepare a segmented income statement.
- Calculate the contribution margin for each segment.
- Analyze the profitability of each segment and suggest improvements.
- Discuss the importance of segment reporting in financial analysis and decision-making.
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