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The operations of Smits Corporation are divided into the Child Division and the Jackson Division. Projections for the next year are as follows: Child Division
The operations of Smits Corporation are divided into the Child Division and the Jackson Division. Projections for the next year are as follows:
| Child Division | Jackson Division | Total | ||||
| Sales revenue | $250,000 | $180,000 | $430,000 | |||
| Variable expenses | 90,000 | 100,000 | 190,000 | |||
| Contribution margin | $160,000 | $80,000 | $240,000 | |||
| Direct fixed expenses | 75,000 | 62,500 | 137,500 | |||
| Segment margin | $85,000 | $17,500 | $102,500 | |||
| Allocated common costs | 35,000 | 27,500 | 62,500 | |||
| Total relevant benefit (loss) | $50,000 | $(10,000) | $40,000 | |||
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Accounting In Emerging Economies
Authors: Mathew Tsamenyi
1st Edition
1849506256, 9781849506250
