Management Accounting
- Submitted by: sabrinaadn
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- Category: Science
- Date Submitted: 12/29/2010 08:05 AM
- Pages: 2
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|12-56 |(a) | |Product Line | | |
| | | |1 | |2 | |3 | |Total |
| | |Revenue |$7,160,000 | |$1,900,000 | |$4,200,000 | |$13,260,000 |
| | |Variable costs |4,296,000 | | 950,000 | |1,680,000 | | 6,926,000 |
| | |Contribution margin |2,864,000 | |950,000 | |2,520,000 | |6,334,000 |
| | |Other costs | 859,200 | | 237,500 | | 693,000 | | 1,789,700 |
| | |Segment margin |2,004,800 | |712,500 | |1,827,000 | |4,544,300 |
| | |Allocated avoidable | | | | | | | |
| | | costs | 349,000 | | 156,000 | | 698,000 | | 1,203,000 |
| | |Income |$1,655,800 | |$556,500 | |$1,129,000 | |$3,341,300 |
| | |Unallocated costs | | | | | | | 801,300 |
| | |Company profit | | | | | | |$2,540,000 |
| | | | | | | | | | |
(b) The common interpretation is that the segment margin is the...
| | | |1 | |2 | |3 | |Total |
| | |Revenue |$7,160,000 | |$1,900,000 | |$4,200,000 | |$13,260,000 |
| | |Variable costs |4,296,000 | | 950,000 | |1,680,000 | | 6,926,000 |
| | |Contribution margin |2,864,000 | |950,000 | |2,520,000 | |6,334,000 |
| | |Other costs | 859,200 | | 237,500 | | 693,000 | | 1,789,700 |
| | |Segment margin |2,004,800 | |712,500 | |1,827,000 | |4,544,300 |
| | |Allocated avoidable | | | | | | | |
| | | costs | 349,000 | | 156,000 | | 698,000 | | 1,203,000 |
| | |Income |$1,655,800 | |$556,500 | |$1,129,000 | |$3,341,300 |
| | |Unallocated costs | | | | | | | 801,300 |
| | |Company profit | | | | | | |$2,540,000 |
| | | | | | | | | | |
(b) The common interpretation is that the segment margin is the...