Question
XYZ Industries operates three divisions: A, B, and C. The following financial data is provided for the year ended 31 December 2024: Item Division A
XYZ Industries operates three divisions: A, B, and C. The following financial data is provided for the year ended 31 December 2024:
Item | Division A ($) | Division B ($) | Division C ($) | Total ($) |
Sales revenue | 900,000 | 700,000 | 500,000 | 2,100,000 |
Variable costs | 450,000 | 350,000 | 250,000 | 1,050,000 |
Fixed costs | 180,000 | 140,000 | 100,000 | 420,000 |
Required: a. Prepare a responsibility income statement for each division. b. Calculate the contribution margin and segment margin for each division. c. Evaluate the performance of each division based on the segment margin. d. Discuss the importance of responsibility accounting in performance measurement.
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
