Midtown Retal operates a retall store in Kansas City, MO., and St. Louis, MO. The following...
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Midtown Retal operates a retall store in Kansas City, MO., and St. Louis, MO. The following information relates to the Kansas City facility: The store sold 64,000 units at $22.00 each, after having purchased the units from various suppliers for $15.50. Kansas City salespeople are paid a 4% commission based on gross sales dollars. Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $59,000 for the year. Local property taxes amounted to $19,500. • The sales manager's $70,000 salary is set by Kansas City's store manager. In contrast, the store manager's $139,000 salary is determined by Midtown's vice president. • Kansas City incurred $9.300 of other noncontrollable costs. • Nontraceable (common) corporate overhead totaled $73,000. Midtown's corporate headquarters is located in St. Louis, and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income statement for the Kansas City store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin. Varlable costs Segment contribution margin Traceable, controllable fixed costs: Controllable profit margin Traceable, uncontrollable fixed costs Segment profit margin Midtown Retal operates a retall store in Kansas City, MO., and St. Louis, MO. The following information relates to the Kansas City facility: The store sold 64,000 units at $22.00 each, after having purchased the units from various suppliers for $15.50. Kansas City salespeople are paid a 4% commission based on gross sales dollars. Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $59,000 for the year. Local property taxes amounted to $19,500. • The sales manager's $70,000 salary is set by Kansas City's store manager. In contrast, the store manager's $139,000 salary is determined by Midtown's vice president. • Kansas City incurred $9.300 of other noncontrollable costs. • Nontraceable (common) corporate overhead totaled $73,000. Midtown's corporate headquarters is located in St. Louis, and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income statement for the Kansas City store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin. Varlable costs Segment contribution margin Traceable, controllable fixed costs: Controllable profit margin Traceable, uncontrollable fixed costs Segment profit margin
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Answer rating: 100% (QA)
A C 1 Sales revenue 64000 x 22 2 Less Variable cost 2 1408000 3 Cost of goods sold 64000 x 1550 4 Sa... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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