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to Computers has two divisions that manufacture computing devices. Below are the results from last year Sales Revenue $ Laptop 14,500,000.00 5 Tablet Total Variable

to Computers has two divisions that manufacture computing devices. Below are the results from last year Sales Revenue $ Laptop 14,500,000.00 5 Tablet Total Variable Cost of Goods Sold $ Fixed Cost of Goods Sold $ Grass Profit S Variable Operating Expenses S 9,500,000.00 $ 1,400,000.00 $ 3,600,000.00 $ 1,850,000.00 5 9 Fixed Operating Expenses $ 10 Common Fixed Costs $ 900,000.00 S 1,200,000.00 5 36,000,000.00 5 50,500,000.00 23,400,000.00 5 32,900,000.00 1,880,000.00 $ 3,280,000.00 10,720,000.00 $ 14,320,000.00 5,760,000.00 $ 7,610,000.00 840,000.00 $ 1,740,000.00 1,300,000.00 $ 2,500,000.00 S 350,000.00 $ 2,820,000.00 S 2,470,000.00 11 Operating Income 2 3 Meng Wanzhou, the President of GIGO is not happy that the laptop division is losing money. a) Prepare a segment margin income statement. Fixed cost of goods sold, and fixed operating expenses can be traced to each division. (6 marks) b) Should Meng keep or close the laptop division? (1 mark)

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