The company is a retail organization that sells a single product. The

product is sold in three districts, as shown above. Additional information

on the company follows:

(a) The sales and administrative offices are centrally located being

about the same distance from each district.

(b) Each district specifies on the sales order what shipping method is

to be used (by truck, rail, or air). All goods are shipped from a

central warehouse. Shipping is a variable cost, and it is traceable to

the districts; differences in amounts above are reflective of the

difference shipping methods used.

(c) All salespersons are paid a base salary of Tk.2,000 per month, plus

a commission of 6% of sales. There are 6 salespersons in District

A, 5 in District B, and 4 in District C.

(d) Each district manager must arrange his or her own districts

advertising program. The national advertising is provided by the

central office.

(e) The variable costs of processing orders, which have been included

in the Central office administrative expenses above, amount to

Tk.25,000. During March, District A had 3,000 orders. District B

had 1,500 orders, and District C had 500 orders. The remainder of

the Central office administrative expenses are fixed and relate to

general administrative assistance provided to all parts of the

organization.

(f) The warehouse contains 160,000 square feet of storage space.

District A uses 60,000 square feet, District B uses 80,000 square

feet, and District C uses 20,000 square feet.

Required:

(i) Garth Hansen, the president, is asking the controller to redo the statement using the contribution margin and segment margin approach and to include an amount column and a Percent column for the company in total for each district.

SO PLEASE I NEED THE CONTRIBUTION MARGIN AND SEGMENT MARGIN Both of them

Total Company Districts Sales @ Tk.20 per unit Tk.1,000,000 Tk.300,000 Tk.500,000 Tk.200,000 90,000 450,000 Less cost of goods sold @ Tk.9 per unit 35,000 225,000 Gross margin 550,000 165,000 275,000 110,000 Less operating expenses: Marketing expenses 11,250 24,000 18,000 12,000 20,000 34,500 119,750 Shipping Warehouse rent Sales commissions 51,250 80,000 60,000 30,000 75,000 115,000 411,250 25,000 40,000 30,000 10,000 25,000 57,500 187,500 15,000 16,000 12,000 8,000 30,000 23,000 104,000 Sales salaries District advertising National advertising* Total marketing expenses dministrative expenses 12,000 15,000 District management salaries Central office administrative expenses* 40,000 13,000 Total administrative expenses Total operating expenses Net operating income (loss) 20,000 33,000 137,000 Ik.(1250 Ik.3250 Ik.22.500 Ik.(27000) 100,000 140,000 551,250 30,000 42,000 161,750 50,000 65,000 252,500