Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the contribution margin for Store A? what is the profit margin controllable by the manager for Store B? what is the profit margin

what is the contribution margin for Store A?

what is the profit margin controllable by the manager for Store B?

what is the profit margin controllable by the manager for Store C?

what is the profit margin for Store A?

what is the profit margin for Store C?

what is the profit margin for Store C if the manager can increase the store's sales by 40% or $60,000?

image text in transcribed

X Company Segmented Income Statement Stores are segments of the company For Year Ended December 31, 201X Total Store C Total Store A Store B Store C $1,000,000 $500,000 $350,000 $150,000 Other information Store AStore B Sales Variable Costs as % of sales Fixed Costs Sales Revenue Variable Costs Store Contribution Margin Less: Fixed costs controllable by manager Profit margin controllable by store manager Less: Fixed costs traceable to a store but controllable others Store profit margin Less: Common fixed costs Net income before taxes 500,000 350,000 150,000 50% 40% 50% Controllable by store manager Traceable to store by controllable by others Common 80,000 70,000 60,000 90,00070,000 50,000 50,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions