Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
The following is a breakdown of Sales by Channel. Sales Channel Online Retail Catalogue Sales $300,000 $150,000 $210,000 Variable Costs as a percent of sales
The following is a breakdown of Sales by Channel. Sales Channel Online Retail Catalogue Sales $300,000 $150,000 $210,000 Variable Costs as a percent of sales 50% 40% 45% Traceable Fixed Costs 100,000 85.000 80.000 Common Fixed Costs $124,000 a. Create a segmented contribution margin statement using a computer spreadsheet. Segmented Contribution Margin Statement Segment (Sales Channel) Total Online Retail Catalogue Sales 660,000 300,000 Less: Variable Costs 304,500 150,000 Contribution Margin 355,500 150,000 Less: Traceable Fixed Costs 265,000 Segment Margin 90,500 50,000 5,000 35,500 Less: Common Fixed Costs 124,000 Operating Profit (33,500) b. What would happen to overall company profits if the Retail division were discontinued
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started