Sales 400,000 220,000 180,000

Question

Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Sales 400,000 220,000 180,000 Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be Var Expense 204,000 132,000 72,000
Contrib Margin 196,000 88,000 108000
Traceable Fixed Exp 127000 55000 72000
Segment Margin 69000 33000 36000
Common Fixed Expense 35000
NOI 34000

A. During June the sales clerks in Division F received salariestotaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they ae paid a commisiion of 18% of sales . If sales in Division F increase by $65,000 as a result of thsi change the July sement margin for Dvisioin F should be

Explanation / Answer

The statement of margin: Sales=$285000(220000+65000)

Less variable costs=$171000(132000/220000*285000)

Less:Commission=51300

COntribution=62700

Less Fixed costs=20000(55000-35000)[Assuming salaries to be fixed expenses]

Margin=$42700

The change in margin is positive 8700

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