Question: Sales $ 2 2 7 , 5 0 0 Variable expenses 9 1 , 0 0 0 Contribution margin 1 3 6 , 5 0

Sales
$
2
2
7
,
5
0
0
Variable expenses
9
1
,
0
0
0
Contribution margin
1
3
6
,
5
0
0
Traceable fixed expenses
1
5
,
0
0
0
Segment margin
$
1
2
1
,
5
0
0
Assume Annie
s Homemade divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for
2
0
%
of mobile sales and has a variable expense ratio of
4
7
.
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
2
8
%
of mobile sales and has a variable expense ratio of
4
2
.
0
%
,
includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for
5
2
%
of mobile sales and has a variable expense ratio of
3
6
.
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. If the total mobile sales hold constant, but sales of Corporate Subscriptions decrease by $10,000 and sales at Catered Events increase by $10,000, then what would be the impact on profits?

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