### Variable costing-segment reporting

Assignment Help Managerial Accounting
##### Reference no: EM1346800

Michaels Company segments its income statement in its east and west divisions.The company's entire sales, contribution margin ratio, and net operating income are \$600,000, 50%, and \$50,000, respectively. The west divisions contribution margin and contribution margin ratio are \$150,000 and 75%, respectively. The east divisions segment margin is \$70,000. The company has \$60,000 of common fixed costs that cannot be traced to either division

Required: Prepare an income statement for Michael's Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent sales.

#### Questions Cloud

 Compute the expected value : You have decided to invest a graduation gift of \$1000. The yearly rate of return is given in the following table for each of three different types of investments & three (3) different states of economy. Derive the total supply function of x for the industry : Derive the total supply function of X for the industry assuming that the industry operated under perfect competition. Websites-market segment : Detailed solution outlines market segment which visits candystand.com and describe how to estimate the target audience. Elucidate what would be the right mix of monetary : Elucidate what would be according to your opinion the right mix of monetary and fiscal policies for years 2011-2012. Elucidate what would be according to your opinion the appropriate structure of your investment portfolio. Variable costing-segment reporting : Michaels Company segments its income statement in its east and west divisions.The company's entire sales, contribution margin ratio, and net operating income are \$600,000, 50%, and \$50,000, respectively. Explain why may the effective patent life of a drug : Why may the effective patent life of a drug be shorter than the legal life. Explain why may the effective patent life of a drug be longer than the legal life. Ridge company segment interim reporting : Ridge company is in the process of determining its reportable segments for the year ended December 31 2012. As the person responsible for determining this information, you gather the following information. Discuss and explain structure and staffing : Discuss and explain the following terms related to structure & staffing: restructuring, realignment & lateral shift. Select any term that you believe to the most. What was the velocity of the bullet : The rocket's speed was measured to be 1.49 c. The rocket's rest length is 380m. An observer flying through  measured the rocket to be 199m long.

### Write a Review

#### Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

#### Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

#### Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

#### Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

#### Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

#### Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

#### Prepare Company financial statements

Prepare Company financial statements

#### Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

#### Discuss the ethical issues

Discuss the ethical issues

#### Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

#### Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.