Question
The Company sells clothing and accessories and the following is its most recent monthly contribution format income statement: Sales $ 1,624,000 Variable expenses 644,480 Contribution
The Company sells clothing and accessories and the following is its most recent monthly contribution format income statement:
| Sales | $ | 1,624,000 |
| Variable expenses | 644,480 | |
| Contribution margin | 979,520 | |
| Fixed expenses | 1,077,000 | |
| Net operating income (loss) | $ | (97,480) |
The Accounting Department has developed the following financial information:
| Division | |||||||||
| Ladies' Clothing | Men's Clothing | Accessories | |||||||
| Sales | $ | 444,000 | $ | 660,000 | $ | 520,000 | |||
| Variable expenses as a percentage of sales | 62 | % | 26 | % | 38 | % | |||
| Traceable fixed expenses | $ | 257,000 | $ | 336,000 | $ | 201,000 | |||
Prepare a contribution format income statement segmented by divisions.
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Financial Accounting A Critical Approach
Authors: John Friedlan
1st Edition
0130193720, 978-0130193728
