segmenten invome statement by product line

the first part if the income statement is already correct, need the second oart only and the part C of the question

Notes to the financial statements: 1. Advertising is committed to at the beginning of the period by management. Management has many different forms of advertising campaigns with different focusac ae fnllowo: 2. The company uses the straight-line method of depreciation. 3. The property taxes are set by the City and do not change with changes in sales volume. 4. Parts and services expense varies with sales of cross country skis, mountain bikes, and accessories. There are no parts 7. Whaties are thie name regardiess of actioy and wit not change even id a produd line is dropesed II Intecest expense is charged on the outatanding bank loani. Thie ivhat indetent emensis is Thit As (25) marisi) 1) Husiate the segmented iocoene statemest using the statenent the jueior accoentant prepared and the astes to the financial stahemests ichapter 7 Appinitix) Check figures have beee provided to ensure you are ce the ilght frack. If yoe are aot arring at the check figures, please discess anth your group inembers to determine wtere you wunt wrong' fee the word dociement previded to roer groep containiag the check figurest th ofitin lormelas into each ceil. You cannet use your calcutator and input the final ansxor. 3. Managemnent has been trying to decide df any departinents shoold be closed, Hased oa the segmented incomse statemenet you jepegred, what are your recomumendations to management? Fhich (if any) department stould be closnd? 4. Management had been consadering closing the Farts a Servicat Departruant batsed on the sogmented income staferneat that the juaior accountant prepared. If this segment were closed. thanagemest estirnates ihat sales for both Cross Coentry Skis and Mountain Mikes will decreages (see. 4. Management had been considering closing the Parts \& Service Departiment based on the segmented income statement that the junior accountant propared. It this segment were closed, manapement estimates that sales for both Cross Country Skis and Mountain Bikes will decrease (see percentage belom. Calculate the overall decrease in income to the coengaay as a whole if the parts 8 service department is closed. 5. Based on both quantitatire and qualitative analysis, showld the Parts 3 Service Department be closed? Explain to masagement in a way that they can ubderstand. Be sore to use your answer from the previous part in your respoese. Do not give texthook abswers, wse goestioe data! (2 marks) 6. Phease write a brief memo to the jusior accoestant explaining the chinges pou made to the sogmented income statenent. If would be helofal to explain items yoeve incloded in rout statemeat itat Kelly did not, especialy since ther strugpled whtr traceatle and coenmon ficed costs. Iexpook definitions mill not be a matsed malks. Please ese question data and yoer ean words. Fwen thoegh the junior accountant has some accounting backgroend, the owiters do not. As such, please ensure you mite explanations in a way that both the junior accoubtant and the owners can usderstand. This 115 must be written in a protessional, business tose. (5 marks) 6. Please write a brief memo to the junior accountant explaining the changes you made to the segmented income statement. It would be helpful to explain items you've included in your statement that Kelly did not, especially since they struggled with traceable and common fixed costs. Textbook definitions will not be awarded marks. Please use question data and your own words. Even though the junior accountant has some accounting background, the owners do not. As such, please ensure you write explanations in a way that both the junior accountant and the owners can understand. This must be written in a professional, business tone. ( 5 marks) Hi there! Welcome to the team. Im Kelly, the jumior accountant here at Mounfain Sports. Ive been working with the company for anhive now, helping out with the bookkeeping. My mom is one of the cuners. Anyway, I am quite comfortable with preparing a traditional income statement (this is the income statement learned to prepare in financial accounting). However, the owners are interested in quite a few CVP concepts. 1 iearned about these in my introductory managerial accounting course but it's been awhile. Could you help me classiby each of the operating expenses as variable or fixed expenses (Part A beiow)? Afer that. I think it would be helpfur to propare a CVP income stasement (Part B) so that those other concepts (Nke break-even. margin of satety etc) can be calculated (Part C) My morn thought it would be a great idea to present these calculations along with detalied explanations to ail of the owners since three of the owners arent actively involved in the day to day operations of the business. On, I should tell you, the owners do not have an accounting background so we have to explain those CVP concepts in a way that they can understand. Thaniks so much for your help? Mountain Sports Lid. income Statement For the Year Ended Dec 31, 2021 Part A: Cost Classification (Chapter 2, 6) (5 marks) Furt CicVP Analy wes (Chapter i) (9 markg) 51. .000 mean? Marks mil aut be asarded bor textitoak detntians. Notes to the financial statements: 1. Advertising is committed to at the beginning of the period by management. Management has many different forms of advertising campaigns with different focusac ae fnllowo: 2. The company uses the straight-line method of depreciation. 3. The property taxes are set by the City and do not change with changes in sales volume. 4. Parts and services expense varies with sales of cross country skis, mountain bikes, and accessories. There are no parts 7. Whaties are thie name regardiess of actioy and wit not change even id a produd line is dropesed II Intecest expense is charged on the outatanding bank loani. Thie ivhat indetent emensis is Thit As (25) marisi) 1) Husiate the segmented iocoene statemest using the statenent the jueior accoentant prepared and the astes to the financial stahemests ichapter 7 Appinitix) Check figures have beee provided to ensure you are ce the ilght frack. If yoe are aot arring at the check figures, please discess anth your group inembers to determine wtere you wunt wrong' fee the word dociement previded to roer groep containiag the check figurest th ofitin lormelas into each ceil. You cannet use your calcutator and input the final ansxor. 3. Managemnent has been trying to decide df any departinents shoold be closed, Hased oa the segmented incomse statemenet you jepegred, what are your recomumendations to management? Fhich (if any) department stould be closnd? 4. Management had been consadering closing the Farts a Servicat Departruant batsed on the sogmented income staferneat that the juaior accountant prepared. If this segment were closed. thanagemest estirnates ihat sales for both Cross Coentry Skis and Mountain Mikes will decreages (see. 4. Management had been considering closing the Parts \& Service Departiment based on the segmented income statement that the junior accountant propared. It this segment were closed, manapement estimates that sales for both Cross Country Skis and Mountain Bikes will decrease (see percentage belom. Calculate the overall decrease in income to the coengaay as a whole if the parts 8 service department is closed. 5. Based on both quantitatire and qualitative analysis, showld the Parts 3 Service Department be closed? Explain to masagement in a way that they can ubderstand. Be sore to use your answer from the previous part in your respoese. Do not give texthook abswers, wse goestioe data! (2 marks) 6. Phease write a brief memo to the jusior accoestant explaining the chinges pou made to the sogmented income statenent. If would be helofal to explain items yoeve incloded in rout statemeat itat Kelly did not, especialy since ther strugpled whtr traceatle and coenmon ficed costs. Iexpook definitions mill not be a matsed malks. Please ese question data and yoer ean words. Fwen thoegh the junior accountant has some accounting backgroend, the owiters do not. As such, please ensure you mite explanations in a way that both the junior accoubtant and the owners can usderstand. This 115 must be written in a protessional, business tose. (5 marks) 6. Please write a brief memo to the junior accountant explaining the changes you made to the segmented income statement. It would be helpful to explain items you've included in your statement that Kelly did not, especially since they struggled with traceable and common fixed costs. Textbook definitions will not be awarded marks. Please use question data and your own words. Even though the junior accountant has some accounting background, the owners do not. As such, please ensure you write explanations in a way that both the junior accountant and the owners can understand. This must be written in a professional, business tone. ( 5 marks) Hi there! Welcome to the team. Im Kelly, the jumior accountant here at Mounfain Sports. Ive been working with the company for anhive now, helping out with the bookkeeping. My mom is one of the cuners. Anyway, I am quite comfortable with preparing a traditional income statement (this is the income statement learned to prepare in financial accounting). However, the owners are interested in quite a few CVP concepts. 1 iearned about these in my introductory managerial accounting course but it's been awhile. Could you help me classiby each of the operating expenses as variable or fixed expenses (Part A beiow)? Afer that. I think it would be helpfur to propare a CVP income stasement (Part B) so that those other concepts (Nke break-even. margin of satety etc) can be calculated (Part C) My morn thought it would be a great idea to present these calculations along with detalied explanations to ail of the owners since three of the owners arent actively involved in the day to day operations of the business. On, I should tell you, the owners do not have an accounting background so we have to explain those CVP concepts in a way that they can understand. Thaniks so much for your help? Mountain Sports Lid. income Statement For the Year Ended Dec 31, 2021 Part A: Cost Classification (Chapter 2, 6) (5 marks) Furt CicVP Analy wes (Chapter i) (9 markg) 51. .000 mean? Marks mil aut be asarded bor textitoak detntians