Plese solve 1B. The last person who answered provided the incorrect percentages
ID: 2574307 • Letter: P
Question
Plese solve 1B. The last person who answered provided the incorrect percentages for Variable Expenses and Traceable Fixed Expenses. Please provide an explaination; if possible.
Incoma sstoment For the Month Ended June 30 5 960,000 Contribuson margin Management is disappointed with the company's performanice and is wondering what can be done ta improve profits. By examiring sales and coest records, you have delermined the folowing a· Th e oam any is divo ed into two sales er anes Nart eml and Southern e Narthem Terntory recorded $400,000 n sales and $188 000 In vanable expenses dunngures; the rem nng sales and vanable expenses were recorded in the Southern Territory. Fixed expenses of $188,000 and $110,000 are traceable to the Narthem and Southern Territories, respectively. The rest af the fixed expenses are common to the wo territories The oampany is the exclusive distribu the seling b r for two prod s--Paks and Tibs. Sales of Paks and Tit s totaled S200,000 and S200 000, respectively in the them territory ann June. Var able expertses are 30% of noe f Psks and 64% for Ths. Cast records show that S92,000 af the Northern Territory's f ed expenses are tr able to Paks and S50 000 to Tibs with the remander common to the two products. contribution format segmented income statenents for the total comparty braken down between sales territories. (Do not round your Intermedlate percantage answera and round your inal percantage answere to 1 declmal placa .e. 1234 shouid be entered as 12.3) Answer is not complete. Balec Territory Total Compeny 960.000 100 400.000 C0 560,000 Varilablo 42,000 25.6 24,000 Sales tatory sagmant magn Common fixd 244000 192000 52.00O 1b. Prepare contribution formst segmented income statements for the Northem Territory broken down by product rve. (Do not round your Intermediate percentage anewere and round your final percentaga anewars to 1 declmal place (L. .1234 should ba entared ss 12.3) & Answer is not complete. Produot LIne Northern Territory Amount D0,000 200,000 1000 200,000 Varilablo 140,000 42,0DD D,000 6,DDD 92,000 Product Ine segmant marg n Common fixed aExplanation / Answer
Northern Territory Paks Tibs Amount % Amount % Amount % Sales 400000 100.0% 200000 100.0% 200000 100.0% Variable expenses 188000 47.0% 60000 30.0% 128000 64.0% Contribution margin 212000 53.0% 140000 70.0% 72000 36.0% Traceable fixed expenses 142000 35.5% 92000 46.0% 50000 25.0% Product line segment margin 70000 17.5% 48000 24.0% 22000 11.0% Common fixed expenses 46000 11.5% Sales territory segment margin 24000 6.0% Percentages are calculated by dividing each figure by respective sales