Michaels Company segments its income statement into its East and West Divisions.
ID: 2445161 • Letter: M
Question
Michaels Company segments its income statement into its East and West Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $640,000, 50%, and $58,000, respectively. The West Division’s contribution margin and contribution margin ratio are $153,000 and 77%, respectively. The East Division’s segment margin is $71,000. The company has $54,000 of common fixed costs that cannot be traced to either division. Required: Prepare an income statement for Michaels Company that uses the contribution format and is segmented by divisions. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your percentage answers to 1 decimal place and all other answers to the nearest dollar amount.) Divisions Total Company East West Amount % Amount % Amount % $ $ $ $ $ $
Explanation / Answer
Total revenue is 224000
west = 68%
Est = 42%