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Author Question: Bill Jones Flooring's accountant, has prepared the following income statement for the month of ... (Read 11 times)

isam

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on: Feb 5, 2023
Bill Jones Flooring's accountant, has prepared the following income statement for the month of May.

​​ResidentialCommercialTotal
Sales Revenue$2,760,000$3,125,000 $5,885,000
Variable expenses    1,305,00  2,520,000  3,825,000
Contribution margin1,455,000605,000 2,060,000
Fixed expenses     645,000    615,0000  1,260,000
Operating income$   810,000$   (10,000)$   800,000

In preparing the income statement, Bill was unsure what to do with $240,000 in corporate fixed expenses that cannot be traced to a division. Since these costs were incurred to run the business, and he believed that each division benefited equally, he just allocated half to each division.

Required:

a.How do you think Bill should have handled the $240,000 in corporate fixed
expenses?
b.Prepare a segment margin income statement that highlights each division's
contribution
to corporate profits. Omit the heading.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by isam on Feb 5, 2023

GoldenBrown

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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isam

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

JCABRERA33

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Reply 3 on: Yesterday
:D TYSM

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