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QUESTION (10 MARKS, 18. MINUTES) The following selected data relate to the Mexit Division of Swifty Enterprises (SE) Sales revenue N$4,580,000 Uncontrollable fixed costs traceable
QUESTION (10 MARKS, 18. MINUTES) The following selected data relate to the Mexit Division of Swifty Enterprises (SE) Sales revenue N$4,580,000 Uncontrollable fixed costs traceable to the division 1,360,000 Allocated corporate overhead 590,000 Controllable fixed costs traceable to the division 1,120,000 Variable costs 40% MARKS NNN 2 1 REQUIRED: 6.1. Compute the following for the Mexit Division a. Segment contribution margin; b. Controllable profit margin: G. Segment profit margin. 6.2. When analyzing the Mexit Division as a resource investment for SE, which of the three measures should be used? Why? 6.3. Assume that Mexit's management decided to construct a segmented income statement that reflected the company's five operating departments. Is it possible to trace all of the N$1,120,000 in controllable fixed costs to the departments? Explain briefly 6.4. Which of the five dollar values stated in the body of the problem would be utilized to calculate Swifty Enterprises' income before taxes? 2 2 10 TOTAL MARKS
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