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Situation: Office Supplies Ltd has a geographical structure with two divisions aligned with its two markets: Sydney and Brisbane. The following data is provided for
Situation: Office Supplies Ltd has a geographical structure with two divisions aligned with its two markets: Sydney and Brisbane. The following data is provided for the two divisions for the year 2019: Sales Contribution margin ratio Sydney $500,000 52% $280,000 $200,000 Brisbane $400,000 58% $190,000 $280,000 Fixed costs Divisional investments Common costs for the year totalled $70,000 and were allocated based on sales. The management of Office Supplies Ltd faced an investment opportunity, which would require an investment of $50,000 in 2020 and would deliver sales of $100,000 with variable costs estimated at $50,000 and fixed costs at $42,250. Required: 1. Prepare a divisional performance (divisional margin and divisional profit) for 2019 based on the information provided Sydney Brisbane
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