Cost sheet, Cost Accounting

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Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Houston and one in Dallas. The firm classifies the direct costs of consulting jobs as variable costs. 

 

Assume that Dallas' sales by major market are as follows:  

                                                                                                          Market

                                          Dallas                     Construction Clients                     Landscaping clients

Sales                               $660,000   100%             $440,000  100%                    $220,000      100%

Variable Expenses             396,000      60                   286,000   65                        110,000          50

 

Contributioin Margin             264,000      40                      154,00  35                       110,000           50

Traceable fixed expenses    79,200        12                         22,00  5                         57,200           26

 

Market segment margin       184,800        28                 132,000 30%                           52,800         24%

 

common fixed expenses      19,800          3

not traceable to markets

 

office segment margin         165,000        25%

 

 


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