Following is the information on Paragon Company??s three product lines: Required(a) Construct a segment margin statement for

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Following is the information on Paragon Company??s three product lines:

Required(a) Construct a segment margin statement for Paragon Company.(b) Explain why the segment margins reported for an organization unit must be interpretedcarefully.

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Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

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Question Posted: Oct 29, 2011 06:50 AM

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Following is the information on Paragon Company??s three product lines: Required(a) Construct a segment margin statement for

Question:

PRODUCT LINE 3 $4,200,000 Revenue Variable cost percentage of sales Other costs Allocated avoidable corporate costs Allocated unavoidable corporate costs $7,160,000 60% $1,900,000 50% 40% $859,200 $237,500 $693,000 $698,000 $156,000 $349,000 $24,000 $570,800 $206,500

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a Product Line 1 2 3 Total Revenue 7160000 1900000 4200000 13260000 Variable costs 4296000 950000 16...View the full answer

Management Accounting Information for Decision-Making and Strategy Execution

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