AC505 Chap 12 Hmwk Solutions - Chapter12...

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Chapter 12 Segment Reporting, Decentralization, and  the Balanced Scorecard Exercise 12-1  (15 minutes) Total Weedban Greengrow Sales*. .................................... $300,000 $90,000 $210,000 Variable expenses**. ...............   183,000         36,000         147,000     Contribution margin. ................ 117,000 54,000 63,000 Traceable fixed expenses. .......     66,000         45,000           21,000     Product line segment margin. . 51,000 $ 9,000 $ 42,000 Common fixed expenses not  traceable to products. ...........       33,000     Net operating income. ............. $ 18,000 * Weedban: 15,000 units × $6.00 per unit = $90,000. Greengrow: 28,000 units × $7.50 per unit = $210,000. * Weedban: 15,000 units × $2.40 per unit = $36,000. Greengrow: 28,000 units × $5.25 per unit = $147,000.
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Exercise 12-2  (10 minutes) 1. Net operating income
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AC505 Chap 12 Hmwk Solutions - Chapter12...

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