Question
The Finance Department at Mark Company produced the following segment margin statement for the most recent period. Division A Division B Total Revenue $1,023,900 $2,389,100
The Finance Department at Mark Company produced the following segment margin statement for the most recent period.
Division A | Division B | Total | |
Revenue | $1,023,900 | $2,389,100 | $3,413,000 |
Variable Costs | $521,000 | $645,000 | $1,166,000 |
Contribution Margin | $502,900 | $1,744,100 | $2,247,000 |
Allocated Fixed Costs | $337,800 | $788,200 | $1,126,000 |
Segment Margin | $165,100 | $955,900 | $1,121,000 |
Fixed costs were allocated to the two divisions based on each divisions share of total revenue. For example the fixed cost allocated to Division A was ($1,023,900 / $3,413,000) $1,126,000.
The company president has just returned from a course where she heard about the notion of traceable fixed costs and common fixed costs. Upon investigation it was determined that only $168,900 of fixed costs were truly common costs. A further $900,800 of fixed costs were traceable: $180,160 to Division A and $720,640 to Division B. Finally, $56,300 of fixed costs were support costs that should be attributed to Division A and Davison B based on each divisions share of total revenue.
Recast the above exhibit to reflect the additional information provided about fixed costs.
Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Do not use the negative sign.
Division A | Division B | Total | |
Revenue | |||
Variable Costs | |||
Contribution Margin | |||
Traceable Fixed Costs | |||
Support Costs | |||
Segment Margin | |||
Common Fixed Costs | |||
Income |
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