chapter 12 solutions

Chapter 12 solutions - CHAPTER 12 Responsibility Accounting Investment Centres and Transfer Pricing 12-57(75 MINUTES 1 SEGMENTED INCOME STATEMENTS

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CHAPTER 12 Responsibility Accounting, Investment Centres, and Transfer Pricing
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12-57 (75 MINUTES) 1. S EGMENTED I NCOME S TATEMENTS : B UCKEYE D EPARTMENT S TORES , I NC . ( IN THOUSANDS ) Segments of Company Segments of Kootenays Division Buckeye Department Stores, Inc. Cariboo Division Kootenays Division Trail Store Nelson Store Cranbrook Store Not Allocated Sales revenue . ................................................ $118,200 $63,000 $55,200 $15,000 $7,200 $33,000 Variable operating expenses: Cost of merchandise sold . ....................... 69,000 36,000 33,000 9,000 6,000 18,000 Sales personnel—salaries . ....................... 9,150 4,800 4,350 1,200 900 2,250 Sales commissions . .................................. 1,140 600 540 150 120 270 Utilities . ...................................................... 1,770 900 870 240 180 450 Other. .......................................................... 1,395 750 645 180 105 360 Total variable expenses . ........................... 82,455 43,050 39,405 10,770 7,305 21,330 Segment contribution margin . ....................... 35,745 19,950 15,795 4,230 (105) 11,670 Less: Fixed expenses controllable by segment manager: Depreciation—furnishings . ...................... 1,680 870 810 240 150 420 Computing and billing . ............................. 1,215 630* 585 120 90 225 $150 Warehouse . ................................................ 2,340 1,350 990 210 180 600 Insurance . .................................................. 1,065 600 465 120 75 270 Security . ..................................................... 1,050 630 420 90 90 240 _____ Total. ................................................................. 7,350 4,080 3,270 780 585 1,755 150 Profit margin controllable by segment manager . ........................................ 28,395 15,870 12,525 3,450 (690) 9,915 (150) Less: Fixed expenses, traceable to segment, but controllable by others: . ......... Depreciation—buildings . .......................... 2,790 1,410 1,380 360 270 750 Property taxes . .......................................... 915 510 405 105 60 240 Supervisory salaries . ................................ 5,250 3,000 2,250 450 300 1,200 300 Total . ................................................................. 8,955 4,920 4,035 915 630 2,190 300 Profit margin traceable to segment . .............. 19,440 $10,950 $ 8,490 $ 2,535 $(1,320) $ 7,725 $(450) Less: Common fixed expenses . .................... 360 Income before taxes . ...................................... 19,080
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This note was uploaded on 02/18/2012 for the course BUSE 237 taught by Professor Sf during the Spring '12 term at Simon Fraser.

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Chapter 12 solutions - CHAPTER 12 Responsibility Accounting Investment Centres and Transfer Pricing 12-57(75 MINUTES 1 SEGMENTED INCOME STATEMENTS

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