Question
RST Corporation operates in three segments: Technology, Healthcare, and Consumer Goods. The following financial data is provided for the year ended 31 December 2024: Item
RST Corporation operates in three segments: Technology, Healthcare, and Consumer Goods. The following financial data is provided for the year ended 31 December 2024:
Item | Technology ($) | Healthcare ($) | Consumer Goods ($) | Total ($) |
Sales revenue | 600,000 | 400,000 | 300,000 | 1,300,000 |
Variable costs | 300,000 | 200,000 | 150,000 | 650,000 |
Fixed costs | 150,000 | 120,000 | 90,000 | 360,000 |
Required: a. Prepare a segmented income statement for the year ended 31 December 2024. b. Calculate the contribution margin for each segment. c. Determine the segment margin for each segment. d. Evaluate the performance of each segment and provide recommendations for improving profitability.
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