Question: The bottom image is the same image above but just scrolled to the right. Your answer is correct. Assume that 7 5 % of the
The bottom image is the same image above but just scrolled to the right. Your answer is correct.
Assume that of the fixed costs shown in the original information, for all product lines, are direct fixed costs. The remaining
fixed costs are common fixed costs, allocated to the product lines according to their sales volumes. Recast the productline income
statements detailing the direct and allocated fixed costs for each, including a subtotal for segment margin and an overall total
column. Enter loss using either a negative sign preceding the number eg or parentheses eg
d
d Based on your analysis for part c what will happen to the allocated costs if Whispering drops the sedans? Recast product
line income statements, including a subtotal for segment margin and an overall total column, if Whispering drops the sedan line.
Assume Sales and sales volumes for the three remaining divisions remains the same as presented. Round proportions to decimal
places, e and final answers to decimal places, e
d What happens to overall operating income? Round proportions to decimal places, eg and final answers to decimal
places, eg
d Are any of the other vehicle lines now in jeopardy of losing money?
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