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

	CALCULATION OF THE REVENUE OF DIVISION Z
	Sales = Variable Cost X 100/40 = $ 92,000 X $ 100/40 =	$               2,30,000
	CALCULATION OF THE SALES REVENUE OF THE Daytona Company
	Net income =	$               1,36,000
	Add: Variable Cost	$               2,81,000
	Add: Common Fixed Cost =	$                  92,000
	Add: Traceable Fixed cost Dept. L=	$                  28,000
	Total Revenue =	$               5,37,000
	CALCULATION OF THE REVENUE OF THE DEPARTMENT L
	Sales Revernue of the company=	$               5,37,000
	Less: Sales revnue of the department Z =	$               2,30,000
	Less: Sales revnue of the department M =	$               1,90,000
	Balance is the revenue of the Department L	$               1,17,000
	Answer = $ 117,000