Pampered Pet is a pet bed manufacturer located in Charleston, South Carolina. Tw

Question

Pampered Pet is a pet bed manufacturer located in Charleston, South Carolina. Two products are produced in its manufacturing facility: Spoiled and Ruint. The following information relates to its first year of operations: Spoiled Units Sold Unit Sales Price Variable Cost Percentage Traceable Fixed Costs Allocated Common Fixed Costs 20,000 $30 10,000 4? 50% $250,000 $100,000 $100,000$50,000 (round to the nearest dollar) The segment margin on which Ruint should be judged is s Pampered Pet's operating income for the year is $

Explanation / Answer

Solution 1:

Solution 2:

Segment margin - Ruint Particulars Amount Sales $450,000.00 Variable cost (50%) $225,000.00 Contribution Margin $225,000.00 Traceble fixed costs $100,000.00 Segment margin $125,000.00

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