Solution-Prepare a segment margin income statement

Prepare a segment margin income statement

Assignment Help Managerial Accounting

Reference no: EM133065523

Question - Sunland Equipment sells equipment to sports enthusiasts. Doug Sunland, the company's president, just received the following income statement reporting the results of the past year.

	Baseball	Soccer	Basketball	Total
Sales revenue	$1,200,000	$3,450,000	$2,275,000	$6,925,000
Variable cost of goods sold	814,000	2,242,500	1,825,600	4,882,100
Fixed cost of goods sold	110,300	179,700	158,500	448,500
Gross profit	275,700	1,027,800	290,900	1,594,400
Variable operating expenses	162,800	552,000	227,500	942,300
Fixed operating expenses	76,200	80,500	69,900	226,600
Common fixed costs	57,500	124,000	92,900	274,400
Operating income	($20,800)	$271,300	($99,400)	$151,100

Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear.

Required - Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division.

Reference no: EM133065523

Questions Cloud

Explain what is an NSF check and how do you treat it : What are the steps that we must do to perform bank reconciliation? Explain what is an NSF check and how do you treat it

Consumer behavior effect the consumer demand of a good : What's the literature review of the report about how the consumer behavior effect the consumer demand of a good.

Fundamental characteristics of high-quality liquid assets : 1. Unlike its peers in many other advanced countries, Australian banks, especially the big four, face quite a low degree of interest rate risk.

Culminating in a conference championship : People are clamoring for more DU shirts to show their pride. What will this change in preferences do to the demand curve? Show this on your graph.

Prepare a segment margin income statement : Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division

Negative consequences of rapid economic growth : Question 1: Some people consider economic growth as good. but others consider it as bad. List and discuss two bene?ts and two disadvantages of economic growth.

Why did china current account surplus increase : Why did China's current account surplus increase so sharply from 2005?

Facilitate the automation of the process : The insurance industry is one of the areas which have been highly disrupted by the emergence of artificial intelligence. For example, the underwriting process,

Explain the appropriate financial reporting standards : Explain the appropriate financial reporting standards to use for this public sector organization, using support from introduction to public sector accounting

User Account

All Pages

Prepare a segment margin income statement

Reference no: EM133065523

Reference no: EM133065523

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT