A C D E F 1 GIGO Computers has two divisions that manufacture computing devices. Below are the results from last year. 2 3 Laptop Tablet 4 Sales Revenue $ S Variable Cost of Goods Sold $ Total 14,500,000.00 $ 36,000,000.00 $ 50,500,000.00 9,500,000.00 $ 23,400,000.00 $ 32,900,000.00 6 Fixed Cost of Goods Sold $ 7 Gross Profit $ 8 Variable Operating Expenses $ 9 Fixed Operating Expenses $ 10 Common Fixed Costs $ 11 Operating Income -$ 1,400,000.00 $ 1,880,000.00 $ 3,280,000.00 3,600,000.00 $ 10,720,000.00 $ 14,320,000.00 1,850,000.00 $ 5,760,000.00 $ 7,610,000.00 900,000.00 $ 840,000.00 $ 1,740,000.00 1,200,000.00 $ 1,300,000.00 $ 2,500,000.00 350,000.00 $ 2,820,000.00 $ 2,470,000.00 12 G H 13 Meng Wanzhou, the President of GIGO is not happy that the laptop division is losing money. 14 a) Prepare a segment margin income statement. Fixed cost of goods sold, and fixed operating expenses can be traced to each division. (6 marks) 15 b) Should Meng keep or close the laptop division? (1 mark) 16 17 18 19 20 21 22