Koala Ltd has only two divisions: A and B. The following data apply to Division A.

Fixed costs controllable outside division......................................... €100000

Net revenues......................................................................... 1500000

Variable marketing and administrative expenses............................... 200000

Total traceable costs............................................................... 1000000

Total variable costs............................................................... 600 000

Required

1. Prepare a segment report for Division A that differentiates between the performance of the manager and the performance of the division.

2. Division B's net revenue is €3 million and its contribution margin is €1.2 million. The segment margin (contribution by division of Division B) is €700 000.

a. Determine fixed costs traceable to Division B.

b. Determine variable costs of Division B.

3. Koala's corporate costs unallocated to divisions are €400000. Determine Koala's income.