Académique Documents
Professionnel Documents
Culture Documents
Total
Company East West
Sales................................. $510,000 $250,000 $260,000
Variable expenses*............ 369,000 200,000 169,000
Contribution margin**....... 141,000 50,000 91,000
Traceable fixed expenses. . 141,000 50,000 91,000
Product line segment
margin.............................. 0 $0 $0
Common fixed expenses
not traceable to products. . 59,000
Net operating loss............. $(59,000)
1. Division
Total
Company East Central West
$400,00 $350,00
Sales........................... $1,000,000 $250,000 0 0
140,00
Variable expenses....... 390,000 130,000 120,000 0
Contribution margin.... 610,000 120,000 280,000 210,000
Traceable fixed 175,00
expenses..................... 535,000 160,000 200,000 0
Divisional segment $ $
margin........................ 75,000 $(40,000) 80,000 35,000
Common fixed
expenses not traceable
to divisions*................ 90,000
Net operating loss....... $(15,000)
*$625,000 $535,000 = $90,000.
1. Sales Territory
Total
Company Northern Southern
Amount % Amount % Amount %
$750,00 $300,00 $450,00
Sales........................................... 0 100.0 0 100 0 100
Variable expenses....................... 336,000 44.8 156,000 52 180,000 40
Contribution margin.................... 414,000 55.2 144,000 48 270,000 60
Traceable fixed expenses............ 228,000 30.4 120,000 40 108,000 24
$ $162,00
Territorial segment margin.......... 186,000 24.8 24,000 8 0 36
Common fixed expenses*........... 150,000 20.0
$
Net operating income................. 36,000 4.8
*378,000 $228,000 = $150,000
Product Line
Northern
Territory Paks Tibs
Amount % Amount % Amount %
$250,00
Sales.......................................... $300,000 100.0 $50,000 100 0 100
Variable expenses...................... 156,000 52.0 11,000 22 145,000 58
Contribution margin................... 144,000 48.0 39,000 78 105,000 42
Traceable fixed expenses........... 70,000 23.3 30,000 60 40,000 16
Product line segment margin..... 74,000 24.7 $9,000 18 $ 26
65,000
Common fixed expenses*.......... 50,000 16.7
$
Sales territory segment margin.. 24,000 8.0
*$120,000 $70,000 = $50,000
Problem 6-21A (continued)