Question
In: Accounting
ABC Company has three divisions, J, P, and W. The following information is available for the...
ABC Company has three divisions, J, P, and W. The following information is available for the most recent month: ABC Company: Sales revenue .............. $513,000 Total fixed costs .......... $125,320 Net income ................. $ 57,300 Division J: Sales revenue .............. $163,000 Segment margin ............. $ 20,810 Division P: Contribution margin ........ $ 30,150 Traceable fixed costs ...... $ 14,270 Variable cost ratio ........ 85% of sales in Division P Division W: Variable costs ............. $ 41,720 Segment margin ............. $ 67,370 Calculate the traceable fixed costs reported by Division J during the most recent month.
Solutions
Expert Solution
Answer:
J's traceable fixed costs = $ 24,380
Calculation:
| Division J | Division P | Division W | Total | |
| Sales Revenue: | $ 163,000.00 | $ 201,000.00 | $ 149,000.00 | $ 513,000.00 |
| Less: Variable costs | $ 117,810.00 | $ 170,850.00 | $ 41,720.00 | $ 330,380.00 |
| Contribution Margin | $ 45,190.00 | $ 30,150.00 | $ 107,280.00 | $ 182,620.00 |
| Less: traceable fixed costs | $ 24,380.00 | $ 14,270.00 | $ 39,910.00 | $ 78,560.00 |
| Segment margin | $ 20,810.00 | $ 15,880.00 | $ 67,370.00 | $ 104,060.00 |
| Less: Common fixed costs | $ 46,760.00 | |||
| Net operating income | $ 57,300.00 |
Explanation:
In case of any doubt, please feel free to comment.
ekkarill92 answered 2 years agoRelated Solutions
ABC Company has three divisions, J, P, and W. The following information is available for the...
ABC Company has three divisions, J, P, and W. The following
information is available for the most recent month:
ABC Company:
Sales revenue .............. $513,000
Total fixed costs .......... $125,320
Net income ................. $ 57,300
Division J:
Sales revenue .............. $163,000
Segment margin ............. $ 20,810
Division P:
Contribution margin ........ $ 30,150
Traceable fixed costs ...... $ 14,270
Variable cost ratio ........ 85% of sales in Division P
Division W:
Variable costs ............. $ 41,720
Segment margin ............. $...
ABC Company has three divisions, J, P, and W. The following information is available for the...
ABC Company has three divisions, J, P, and W. The following
information is available for the most recent month:
ABC Company:
Sales revenue .............. $513,000
Total fixed costs .......... $125,320
Net income ................. $ 57,300
Division J:
Sales revenue .............. $163,000
Segment margin ............. $ 20,810
Division P:
Contribution margin ........ $ 30,150
Traceable fixed costs ...... $ 14,270
Variable cost ratio ........ 85% of sales in Division P
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Variable costs ............. $ 41,720
Segment margin ............. $...
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