Pet Food Express has three divisions, Dog, Cat, and Bird. All fixed costs are unavoidable. Following...
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Pet Food Express has three divisions, Dog, Cat, and Bird. All fixed costs are unavoidable. Following is the income statement for the previous year: Cat Bird Dog $504,000 $ 274,000 $228,000 Total $1,006,000 Sales Variable Costs 125,000 100,800 407,800 Contribution Margin. 182,000 322,000 272,000 149,000 127, 200 113,750 160, 250 Fixed Costs (allocated) Profit Margin 598, 200 546,000 52, 200 $ 50,000 $ (11,250) $ 13,450 $ Two requirements: a. Compute Pet Food Express's total profit margin if the Cat division is dropped? b. Compute Pet Food Express's total profit margin if the Bird division is dropped? a. Compute Pet Food Express's total profit margin if the Cat division is dropped? b. Compute Pet Food Express's total profit margin if the Bird division is dropped? Pet Food Express has three divisions, Dog, Cat, and Bird. All fixed costs are unavoidable. Following is the income statement for the previous year: Cat Bird Dog $504,000 $ 274,000 $228,000 Total $1,006,000 Sales Variable Costs 125,000 100,800 407,800 Contribution Margin. 182,000 322,000 272,000 149,000 127, 200 113,750 160, 250 Fixed Costs (allocated) Profit Margin 598, 200 546,000 52, 200 $ 50,000 $ (11,250) $ 13,450 $ Two requirements: a. Compute Pet Food Express's total profit margin if the Cat division is dropped? b. Compute Pet Food Express's total profit margin if the Bird division is dropped? a. Compute Pet Food Express's total profit margin if the Cat division is dropped? b. Compute Pet Food Express's total profit margin if the Bird division is dropped?
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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