Hernandez Enterprises has two divisions-Retail and Wholesale. Cost and revenue data for each division for the...

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Hernandez Enterprises has two divisions-Retail and Wholesale. Cost and revenue data for each division for the current month are as follows Sales Variable costs es a percentage of sales Fixed costs traceeble to product lines Divisions Retall $ 500,000 Mholesale 5 360,00 40x $ 250,000 $ 120,000 In addition, fioxed costs that are common to both divisions amount to $96,000 Required: e. Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole. Also include columns showing all dollar amounts as percentages of sales, b-1. According to the anolysis performed in part e which division is most profitable in terms of dollars of responsibility margin that it contributes to the company? b-2. Should the common fixed costs be considered when determining the profitability of the two divisions individually? c. The company hes $15.000 to be used in advertising for one of its two divisions and expects that this expenditure will result in additional sales of $60,000, How should the company decide which division to advertise? Complete this question by entering your answers in the tabs below. Reg A Reg B1 Reg B2 Rea C Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole. Also indude columns showing all dollar amounts as percentages of sales. (Round your percentage answers to the nearest whole percentage) Hernandez Enterprises has two divisions-Retail and Wholesale. Cost and revenue data for each division for the current month are as follows Sales Variable costs es a percentage of sales Fixed costs traceeble to product lines Divisions Retall $ 500,000 Mholesale 5 360,00 40x $ 250,000 $ 120,000 In addition, fioxed costs that are common to both divisions amount to $96,000 Required: e. Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole. Also include columns showing all dollar amounts as percentages of sales, b-1. According to the anolysis performed in part e which division is most profitable in terms of dollars of responsibility margin that it contributes to the company? b-2. Should the common fixed costs be considered when determining the profitability of the two divisions individually? c. The company hes $15.000 to be used in advertising for one of its two divisions and expects that this expenditure will result in additional sales of $60,000, How should the company decide which division to advertise? Complete this question by entering your answers in the tabs below. Reg A Reg B1 Reg B2 Rea C Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole. Also indude columns showing all dollar amounts as percentages of sales. (Round your percentage answers to the nearest whole percentage)

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a New Segment Income Statement HERNANDEZ ENTERPRISES Responsibility Income Statement F... View the full answer