ignments/457252 Kimmel, Accounting, be Help I Svstem Announcements Exercise 22-1

Question

ignments/457252 Kimmel, Accounting, be Help I Svstem Announcements Exercise 22-15 (Part Level Submission) Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. ? (a) Compute the missing amounts. Operating Data Women's Shoes Men's Shoes Contribution margin Controllable fixed costs Controllable margin Sales Variable costs $330,480 (3) $220,320 122,400 110,160 550,800 391,680 116,280 734,400 306,000 Click if you would like to Show Work for this question: Open Show Wor LINK TO TEXT

Explanation / Answer

Women's shoes: 1) Variable cost=Sales- cotribution margin                               =734400-330480=$403920 Variable cost is $403920 2)Controllable margin= Contribution margin-controllable fixed cost                                              =330480-122400=$208080 Controllable margin=$208080 Men's shoes: 3)Contribution margin= sales- variable costs                                              =550800-391680=$159120 Cotribution margin=$159120 4)Controllable fixed cost= Contribution margin- controllable margin                                                   =159120-110160=$48960 Controllable fixed cost is $48960 Children's shoes: 5)Controllable fixed cost= Contribution margin- controllable margin                                                   =220320-116280=$104040 Controllable fixed cost is $104040 6) Sales= variable cost+ contribution margin               = 306000+220320=$526320 Sales=$526320

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