Question
Valley Inc. has three divisions, Almond, Grover and Oak. Following is the income statement for the previous year: Almond Grover Oak Total Sales $ 499,000
Valley Inc. has three divisions, Almond, Grover and Oak. Following is the income statement for the previous year:
| Almond | Grover | Oak | Total | |||||||||
| Sales | $ | 499,000 | $ | 273,500 | $ | 227,000 | $ | 999,500 | ||||
| Variable Costs | 182,000 | 124,200 | 100,800 | 407,000 | ||||||||
| Contribution Margin | 317,000 | 149,300 | 126,200 | 592,500 | ||||||||
| Fixed Costs | 273,000 | 169,250 | 119,750 | 562,000 | ||||||||
| Profit Margin | $ | 44,000 | $ | (19,950 | ) | $ | 6,450 | $ | 30,500 | |||
Of the fixed costs, $318,000 is for corporate costs and is allocated equally to the three divisions. a. How much does Grover Division have in direct fixed costs? b. What is Grover Divisions segment margin? c. What would Valleys profit margin be if Grover Division were dropped?
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The Outsourcing Dilemma Whats Best For Internal Auditing
Authors: Larry E. Rittenberg, Institute Of Internal Auditors Research Foundation, Lee A. Campbell
1st Edition
0894133845, 978-0894133848
