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Roystars segmented income statement for the most recent month is given below. The salesperson for Store B currently receives a salary of $14,000 per month.
Roystars segmented income statement for the most recent month is given below.
The salesperson for Store B currently receives a salary of $14,000 per month. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume the proposal is adopted and sales increase by $40,000. The new segment margin for Store B should be?
Sales Variable Expenses Contribution Margin Traceable Fixed Costs Segment Margin Common Fixed Costs Net Operating Income Total Company Store A Store B $600,000 $200,000 $400,000 384,000 144,000 240,000 216,000 56,000 160,000 152,000 42,000 110,000 64,000 14,000 50,000 54,000 $10,000Step by Step Solution
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