Question: Baring Inc. is a decentralized organization operating with three segments. In 2020, Baring recorded the following: Sales $2,160,000 Variable costs 874,900 Contribution margin 1,285,100 Fixed
Baring Inc. is a decentralized organization operating with three segments. In 2020, Baring recorded the following: Sales $2,160,000 Variable costs 874,900 Contribution margin 1,285,100 Fixed costs 1,337,000 Operating income (loss) $(51,900) The President of Baring Inc. has requested segmented reporting based on the three segments. Accordingly, the following information was obtained: Segments West Coast East Coast Prairies Sales $616,000 $815,000 $729,000 Variable costs as percentage of sales 55% 30% 40% Traceable fixed costs $336,000 $546,000 $316,000 Based on this information, respond to the following questions in the respective answer box. 1. What is the value of the common fixed costs? 2. What is the segment margin for the West Coast? 3. What is the segment margin for the East Coast? 4. What is the segment margin for the Prairies?
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