You have worked for Dynamadics Inc. now for over a year and you have proven your value to the compa as a Business Analyst. Throughout the year, you were able to leverage your understanding of managem accounting and management practices to support decision making and organizational success. You hav been promoted to a Senior Business Advisor working directly with managers of the various regions and operational divisions to analyze operations and support the managers in acheving the organizations objectives and goals. Company background information Dynamadics Inc. is a large, locally owned company operating in several regions within western Canada. region manufactures and sells apparel and accessories for both business and casual wear. The original product lines include shoes, boots, sandals, purses, backpacks and computer bags. Some regions have received approval from company owners to introduce new product lines for potential expansion in oth regions. The company has an extensive distribution channel allowing for sales throughout the world. Operational information - Part 1 The Vancouver region of Dynamadics has operations in the city of Vancouver and the city of Victoria. region has had great success marketing and selling its products, perhaps due to its accessibility to international customers. Sales volumes and revenues have been high, however the owners are conce with the low level of operating income in relation to these sales levels. You have been asked to condu analysis and work with the Vancouver regional managers to identify opportunities to improve profits. You have received the following operating results for 2020. Dynamadics Inc. Vancouver Region You have received the following operating results for 2020. Dynamadics Inc. Vancouver Region Income Statement For the Year Ended December 31, 2020 Sales $ 1,160,000 Cost of goods sold 670,000 Gross Margin 490,000 Selling and administrative expenses 313,000 Operating income $ 177,000 (note: there were no inventories at the beginning and end of the year). This region sells all of the product lines, however the owners have asked for an analysis of two specific product lines: Backpacks and Computer Bags. The managers of the Vancouver and Victoria operations provided the following information respecting sales and costs of these products. Dynamadics Vancouver Region Backpacks ho Computer Bags Total 37% 30% 67% 25% 8% 33% 62% 38% 100% Sales by City as % of national sales Vancouver Victoria Total national sales Cost as % of regional sales Variable production costs Variable selling costs Fixed costs by product Traceable fixed cost Common fixed cost 47% 13% 47% 13% $148,000 $74,000 $74,000 Remainder of total costs The managers of these two operations identified Computer Bags as an area of concern for them specifically based on their experiences. They provided you with the following for the Computer Bag product line. Dynamadics Vancouver Region Computer-Bag Product Line Vancouver Victoria Sales Revenue $290,000 $92,800 Costs as percentage of product sales Variable production costs 52% 31.38% Variable selling costs 12% 16% Total $382,800 Ann Dynamadics Vancouver Region Computer-Bag Product Line Vancouver Victoria Sales Revenue $290,000 $92,800 Costs as percentage of product sales Variable production costs 52% 31.38% Variable selling costs 12% 16% Traceable fixed cost $30,000 $44,000 Total $382,800 $74,000 Requirement #1 (14 marks) 1. Prepare, in good form, an income statement segmented by product line for the regional operations, showing the corresponding company totals. (7 mark) 2. In the above income statement, report the segment margin % for each product and in total. (1 mark) 3. Prepare in good form, a segmented performance report for the computer-bag by city. (5 mark) 4. In the above income statement, report the segment margin % for each city and in total. (1 mark) For both requirements: Round your percentage answers to 2 decimal placed (i.e., 0.1234 should be recorded as 12.34%) Round your answers to nearest dollar amount. Check figure: Common fixed cost for requirement #1 is $139,000. Be sure to show your work to support this check figure in your response. You have worked for Dynamadics Inc. now for over a year and you have proven your value to the compa as a Business Analyst. Throughout the year, you were able to leverage your understanding of managem accounting and management practices to support decision making and organizational success. You hav been promoted to a Senior Business Advisor working directly with managers of the various regions and operational divisions to analyze operations and support the managers in acheving the organizations objectives and goals. Company background information Dynamadics Inc. is a large, locally owned company operating in several regions within western Canada. region manufactures and sells apparel and accessories for both business and casual wear. The original product lines include shoes, boots, sandals, purses, backpacks and computer bags. Some regions have received approval from company owners to introduce new product lines for potential expansion in oth regions. The company has an extensive distribution channel allowing for sales throughout the world. Operational information - Part 1 The Vancouver region of Dynamadics has operations in the city of Vancouver and the city of Victoria. region has had great success marketing and selling its products, perhaps due to its accessibility to international customers. Sales volumes and revenues have been high, however the owners are conce with the low level of operating income in relation to these sales levels. You have been asked to condu analysis and work with the Vancouver regional managers to identify opportunities to improve profits. You have received the following operating results for 2020. Dynamadics Inc. Vancouver Region You have received the following operating results for 2020. Dynamadics Inc. Vancouver Region Income Statement For the Year Ended December 31, 2020 Sales $ 1,160,000 Cost of goods sold 670,000 Gross Margin 490,000 Selling and administrative expenses 313,000 Operating income $ 177,000 (note: there were no inventories at the beginning and end of the year). This region sells all of the product lines, however the owners have asked for an analysis of two specific product lines: Backpacks and Computer Bags. The managers of the Vancouver and Victoria operations provided the following information respecting sales and costs of these products. Dynamadics Vancouver Region Backpacks ho Computer Bags Total 37% 30% 67% 25% 8% 33% 62% 38% 100% Sales by City as % of national sales Vancouver Victoria Total national sales Cost as % of regional sales Variable production costs Variable selling costs Fixed costs by product Traceable fixed cost Common fixed cost 47% 13% 47% 13% $148,000 $74,000 $74,000 Remainder of total costs The managers of these two operations identified Computer Bags as an area of concern for them specifically based on their experiences. They provided you with the following for the Computer Bag product line. Dynamadics Vancouver Region Computer-Bag Product Line Vancouver Victoria Sales Revenue $290,000 $92,800 Costs as percentage of product sales Variable production costs 52% 31.38% Variable selling costs 12% 16% Total $382,800 Ann Dynamadics Vancouver Region Computer-Bag Product Line Vancouver Victoria Sales Revenue $290,000 $92,800 Costs as percentage of product sales Variable production costs 52% 31.38% Variable selling costs 12% 16% Traceable fixed cost $30,000 $44,000 Total $382,800 $74,000 Requirement #1 (14 marks) 1. Prepare, in good form, an income statement segmented by product line for the regional operations, showing the corresponding company totals. (7 mark) 2. In the above income statement, report the segment margin % for each product and in total. (1 mark) 3. Prepare in good form, a segmented performance report for the computer-bag by city. (5 mark) 4. In the above income statement, report the segment margin % for each city and in total. (1 mark) For both requirements: Round your percentage answers to 2 decimal placed (i.e., 0.1234 should be recorded as 12.34%) Round your answers to nearest dollar amount. Check figure: Common fixed cost for requirement #1 is $139,000. Be sure to show your work to support this check figure in your response