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Shirley Inc. has three divisions, King, West and Gold. Following is the income statement for the previous year: King $ 986,000 415,500 West $575,500 344,100
Shirley Inc. has three divisions, King, West and Gold. Following is the income statement for the previous year: King $ 986,000 415,500 West $575,500 344,100 Sales Variable Costs Contribution Margin Fixed Costs Profit Margin Gold Total $ 429,000 $ 1,990,500 300,800 1,060,400 128,200 930, 100 146,375 746,000 $ (18,175) $ 184,100 570,500 393,000 $177,500 231,400 206,625 $ 24,775 Of the fixed costs, $324,000 is for corporate costs and is allocated equally to the three divisions. a. How much does Gold Division have in direct fixed costs? Fixed Costs b. What is Gold Division's segment margin? Segment Margin c. What would Shirley's profit margin be if Gold Division were dropped
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