Rightmart has two sales departments: shoes and clothing. DuringFebruary, these t

Question

Rightmart has two sales departments: shoes and clothing. DuringFebruary, these two departments reported the following operatingresults:

                                  Shoes                      Clothing

In additon, fixed costs common to both departments amounted to$54,400

**Question** complete the following responsibility incomestatement for Rightmart. Follow the contribution margin approachand show percentages as well as dollar amounts. Conclude yourincome statement with the company's income fom operations

Explanation / Answer

Shoes Clothing Total Sales 490,000.00 250,000.00 740,000.00 Contribution Margin 0.35 0.50 Contribution Margin 171,500.00 125,000.00 296,500.00 Traceable Fixed Costs (29,200.00) (26,800.00) (56,000.00) Common Costs (54,400.00) Net Income 186,100.00

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