Question

Daytona Company operates three divisions, L, M, and Z. The following
information is available for the most recent month:

Daytona Company:
Variable costs .............    $281,000
Common fixed costs .........    $ 92,000
Net income .................    $136,000

Division L:
Traceable fixed costs ......    $ 28,000

Division M:
Sales revenue ..............    $190,000
Contribution margin ........    $ 57,000
Segment margin .............    $ 46,000

Division Z:
Variable costs .............    $ 92,000
Variable costs .............    40% of sales
Segment margin .............    $106,000

Calculate the sales revenue reported by Division L during the most
recent month.

Answer 1

Dayton Company
	Divsion L	Divsion M	Divsion Z	Total
Sales Revenue	1,60,000	1,90,000	2,30,000	5,80,000
	(580000-190000-230000)	Given	(92000/40%)
Variable Costs	56,000	1,33,000	92,000	2,81,000
	(281000-133000-92000)	(190000-57000)	Given	Given
Contribution Margin	1,04,000	57,000	1,38,000	2,99,000
	(160000-56000)	Given	(230000-138000)	(71000+44000)
Traceable Fixed Costs	28,000	11,000	32,000	71,000
	Given	(57000-46000)	(138000-106000)	(28000+11000+32000)
Segment Margin	76,000	46,000	1,06,000	2,28,000
	(104000-28000)	Given	Given	(136000+92000)
Common Fixed Costs				92,000
				Given
Net income				1,36,000
				Given
Explanation
Segment Margin = 136000+92000		=228000
Hint :Start with Divison Z then Division M and then total company amount to be calculated and balance amounts will be Divison L