All Media Ltd operates three selling departments. Certain indirect expenses are allocated to the selling departments as
Question:
All Media Ltd operates three selling departments. Certain indirect expenses are allocated to the selling departments as follows.
Required (a)Prepare a schedule allocating the indirect expenses to the three departments.
(b) Assuming all products are priced so that they provide a 70% gross margin, calculate the contribution of each department and comment on why the business may still choose to keep all three departments.
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Related Book For
Accounting
ISBN: 9780730382737
11th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie
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