Week_6_Learning_Exercises_-_Student

Week_6_Learning_Exercises_-_Student - Prepare a Segmented...

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Prepare a Segmented Contribution Format Income Statement Prepare a contribution margin format income statement for the year by product and provide the segment margin for Product A and Product B. Westerville Buckeye Company produces and sells two products. Revenue and information by product for the current year is as follows: Product A Product B Selling price per product $10.00 $20.00 Variable expenses per product 4.00 15.00 Traceable fixed expenses per year 110,000 35,000 Units sold during the year 35,000 20,000 Common fixed expenses $100,000 Solution: Sales 350,000 400,000 Variable Expenses 140,000 300,00 Contribution Margin 210,000 100,000 Traceable Fixed Expenses 110,000 35,000 Product-line Segment Margin 100,000 65,000 Common Fixed Expenses 100,000 Net Operating Income 100,000 -35,000 65,000
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Measure Segment Performance Compute the return on investment (ROI) Sales $10,000,000 Net operating income $3,000,000 Average operating assets $20,000,000 15%
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Measure Segment Performance Compute residual income for the year. Sales
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Week_6_Learning_Exercises_-_Student - Prepare a Segmented...

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