Division Division Total Revenue Less variable expenses Cont bution marg n Less t
ID: 2535309 • Letter: D
Question
Division Division Total Revenue Less variable expenses Cont bution marg n Less traceable fixed expenses Segment margin Common fixed costs Net aperating income $5,317,600 2,860,900 5,173,500 3,652,600 1,649,200 5.300,900 1,665,000 1,212,700 2,877,700 2,229,000 716,600 67,900)648,700 572,000 949,400 1,290,500 376 700 When Trent broke the news, Taylor Tatum, manager of the Collectibles division, was upset. Taylor thought that Trent could be making a snap judoment, and suggested that he look at the divisien's detailed operating results. The Cellectibles division is composed of two groups Sports Memorabilia and Cuiris and Samps ports Mermorabilia accounts ur 6?% ? he div on sales and curtribution margin Cuins and Stamps accounts or the other 40 e sports Memorabilia traceable fixed custs are 812.000; CQlns and Stamps $245.000 Prepare a segment margin income statement for the Collectibles division that shows the segment margin of each group, (f the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis, e.g. (5,125) and Rounod answers to 0 decimal ploces, e.g. 5,125.)Explanation / Answer
Solution:
Segment Margin Income Statement for the Collectible Division Sports Memorabilia Coins and Stamps Total collectible Division Revenue $17,16,540 $11,44,360 $28,60,900 Less: Variable Expenses $9,88,920 $6,59,280 $16,48,200 Contribution Margin $7,27,620 $4,85,080 $12,12,700 Less: Traceable Fixed expenses $8,12,000 $2,45,000 $10,57,000 Segment Margin of groups -$84,380 $2,40,080 $1,55,700 Common Fixed Cost ($1280600-$1057000) $2,23,600 Net Operating Income -$67,900