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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
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)
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