Question 4 The following information relates to the beverage division of Namibia Wholesalers. Sales revenue Uncontrollable...

 

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Question 4 The following information relates to the beverage division of Namibia Wholesalers. Sales revenue Uncontrollable fixed costs traceable to the division Allocated corporate overhead Controllable fixed costs traceable to the division Motor vehicles Buildings Fixtures and fitting Trade payables Trade receivables The variable costs take up to 35% of sales. REQUIRED: Compute the following for the Beverage Division: 6.1.1 Segment contribution margin; 6.1.2 Controllable profit margin; 6.1.3 Segment profit margin. Calculate the Beverage Division's return on investment that should be 6.2. used to measure the management of the division's performance TOTAL MARKS (12 marks) 6.1. N$ 6 870 000 2 040 000 885 000 1 680 000 1 500 000 900 000 2 225 000 (600 000) 750 000 Marks Sub- total Total NNN 2 2 2 6 12 2 4 6 12 Question 4 The following information relates to the beverage division of Namibia Wholesalers. Sales revenue Uncontrollable fixed costs traceable to the division Allocated corporate overhead Controllable fixed costs traceable to the division Motor vehicles Buildings Fixtures and fitting Trade payables Trade receivables The variable costs take up to 35% of sales. REQUIRED: Compute the following for the Beverage Division: 6.1.1 Segment contribution margin; 6.1.2 Controllable profit margin; 6.1.3 Segment profit margin. Calculate the Beverage Division's return on investment that should be 6.2. used to measure the management of the division's performance TOTAL MARKS (12 marks) 6.1. N$ 6 870 000 2 040 000 885 000 1 680 000 1 500 000 900 000 2 225 000 (600 000) 750 000 Marks Sub- total Total NNN 2 2 2 6 12 2 4 6 12

Answer rating: 100% (QA)

Step 1 Working note Segmented Contribution Income Statement Beverage Division Amount in N Beverage D... View the full answer