Prepare a segment margin performance report for the pharmaceutical segment. In this report, be sure to include lines for the contribution margin, segment margin, and operating income. Calculate a variance and a variance percentage for each line in the report.

1 Performance Evaluation 2 Prepare a segment margin performance report 3 Drizzdale Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. 4 5 8 9 1 6 Sales $ 866,320 7 Variable Cost of Goods Sold $ 143,325 Variable Operating Expenses $ 162,162 Direct Fixed Manufacturing Overhead $ 96,300 10 Direct Fixed Operating Expenses $ 17,280 11 Common Fixed Expenses $ 14,140 12 Budgeted data for the same time period for the pharmaceutical segment are as follows 13 (all data are in millions): 14 15 Budgeted sales in units 9,100 16 Budgeted average selling price per unit $ 85 17 Variable Cost of Goods Sold per unit $ 15 18 Variable Operating Expenses per unit $ 18 19 Direct Fixed Manufacturing Overhead (in total) $ 90,000 Direct Fixed Operating Expenses (in total) $ 16,000 Common Fixed Expenses Allocated to the 21 Pharmaceutical Segment $ 14,000 22 23 Use the blue shaded areas on the ENTERANSWERS tab for inputs. OD 20 SNN 26 Requirements Prepare a segment margin performance report for the pharmaceutical segment. In this report, be sure to Include lines for the contribution margin, the segment margin, and operating Income. Calculate a variance and a 27 variance percentage for each line in the report. 28 a. Check your spelling carefully and do not abbreviate. 29 b. Follow the format shown in Exhibit 10-4 C Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or Ufunfavorable) when describing the variances. 31 22 Savine & Submitting Solution 30 E G H 1 (Use the ABS function when calculating variances, and use the drop-down selections for For U when describing the variances.) (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong) Performance Report Drizzdale Industries - Pharmaceutical Segment For the Fiscal Year Ended December 31 (all figures in millions of dollars) Actual Budgeted Variance FU Variance F/U 3 1 2 3 4 5 6 7 8 9 Operating income (loss) 0