Question

Roman Products Inc., has two divisions, Milan and Venice. For the month ended March 31, Milan had sales and variable costs of $500,000 and $225,000, respectively, and Venice had sales and variable costs of $800,000 and $475,000, respectively. Milan had direct fixed production and administrative expenses of $60,000 and $35,000, respectively, and Venice had direct fixed production and administrative expenses of $80,000 and $45,000, respectively. Fixed costs that were common to both divisions and couldn't be allocated to the divisions in any meaningful way were selling, $33,000, and administration, $27,000.
Prepare a segmented income statement by division for March.



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  • CreatedMay 05, 2014
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