ch12-AFM102s2012

Managerial accounting 12 8 addingdropping segments

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Adding/Dropping Segments Segment Income Statement Digital Watches Sales Less: variable expenses Variable manufacturing costs Variable shipping costs Commissions Contribution margin Less: fixed expenses General factory overhead Salary of line manager Depreciation of equipment Advertising - direct Rent - factory space General admin. expenses Net operating loss Managerial Accounting $ 500,000 $ 120,000 5,000 75,000 $ 60,000 90,000 50,000 100,000 70,000 30,000 200,000 $ 300,000 400,000 $ (100,000) 12-9 Adding/Dropping Segments IInvestigation has Segment Incometotal fixed general Investigation has revealed that t otal fixed general nvestigation revealed that Statement Investigation Digital Watches factory overhead and general ffactory overhead and general factory actory Sales $ 500,000 administrative expenses would not be affected if administrative expenses would not be affected if administrative expenses administrative Less: variable ttheariable manufacuring costs $ 120,000fixed he digital watch line is dropped. The fixed V digital watch line is d...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online