Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 13 4 pts Kristina Food Pty Ltd operates a food business with two divisions; there is a restaurant and a catering service. A segmented

image text in transcribed

Question 13 4 pts Kristina Food Pty Ltd operates a food business with two divisions; there is a restaurant and a catering service. A segmented profit and loss statement for the company's most recent year is as follows: Total company Restaurant Catering Sales Less: Variable expenses Contribution margin Less: Traceable fixed costs Division segment margin Less common fixed costs Net profit $500,000 $275,000 $225,000 $145,000 $80,000 $130,000 -$50,000 $375,000 $187,500 $187,500 $45,000 $142,500 $125,000 $87,500 $37,500 $100,000 -$62,500 Required: a) If the restaurant division increased its sales by $65,000, calculate the division segment margin for the Restaurant division, and net profit for the total company. Assume that all fixed costs and cost behaviour patterns remained constant. (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Business Reporting For Decision Making

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

6th Edition

978-0730363415, 0730363414

More Books

Students also viewed these Accounting questions

Question

Write down the Limitation of Beer - Lamberts law?

Answered: 1 week ago

Question

Discuss the Hawthorne experiments in detail

Answered: 1 week ago

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago