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Required information

AH $6-4$ Contribution Format Segmented Income Statements $($TDA$)$ LO $6-4$

$[$The following information applies to the questions displayed below.$]$

Refer to the data in Exercise AH $6-3.$ Assume Annie's Homemade Ice Cream divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for $20\%$ of mobile sales and has a variable expense ratio of $47\mathrm{.}6\%,$ refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for $28\%$ of rnobile sales and has a variable expense ratio of $42\mathrm{.}0\%,$ includes selling ice cream at festivals, private venues, and locat microbreweries. The Catered Events segment, which accounts for $52\%$ of mobile sales and has a variable expense ratio of $36\mathrm{.}0\%,$ includes pre$-$purchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales' fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales.

Assume the Food Truck segment's total sales can be divided into three segments$-$Private Venues, Festivals, and Microbreweries$-$as summarized in the visualizations below:

Food Truck Segment

Festivals

Private Venues

Microbreweries

Food Truck Segment Percent of Sales

Food Truck Sales and Variable Expenses

Rrev

$5$ of $7$

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Requirement $4$

Required:

$4.$ If all three of these segments have the same contribution margin ratio, then:

a$.$ What is the total contribution margin for the Private Venues segment $($rounded to the nearest dollar$)?$

b$.$ If the company decided to stop selling ice cream at festivals and all else held constant, what would be the impact on profits?

c$.$ If the company could increase microbrewery sales by $20\%,$ what would be the impact on profits $($rounded to the nearest dollar$)?$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Requirement

Requirement

$4a$

$4b$

Requirement

$4c$

If the company could increase microbrewery sales by $20\%,$ what would be the impact on profits $($rounded to the nearest dollar$)?$

Profits would increase by

$$,6,380$

Prey

$5$ of $7$

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