Question: answer both parts for full rating 2. The Ace Division produces and sells two products. The following data were gathered on activities last month: Product

answer both parts for full rating

answer both parts for full rating 2. The Ace Division produces and

2. The Ace Division produces and sells two products. The following data were gathered on activities last month: Product Product 2 5,000 Production and sales in units Selling price per unit Variable production costs per unit Traceable fixed production costs Variable selling expenses per unit Traceable fixed selling expenses 3,000 100 26 50 $10 $100,000 150,000 S5 $5,000 7,500 The Ace Division also has $110,000 in fixed, administrative expenses. a. Determine the segment profit margin for each product, and the segment profit margin for the Ace Division b. Ace is trying to decide whether to allocate the fixed, administrative expenses of $110,000 to the product lines in evaluating the performance of each product line manager. What is the advantage of allocating the fixed, administrative expenses to the product lines? What is the disadvantage

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