Daytona Company operates three divisions, L, M, and Z. The following information

Question

 Daytona Company operates three divisions, L, M, and Z. The following information is available for the most recent month:  Daytona Company: Variable costs .............    $281,000 Common fixed costs .........    $ 92,000 Net income .................    $136,000  Division L: Traceable fixed costs ......    $ 28,000  Division M: Sales revenue ..............    $190,000 Contribution margin ........    $ 57,000 Segment margin .............    $ 46,000  Division Z: Variable costs .............    $ 92,000 Variable costs .............    40% of sales Segment margin .............    $106,000  Calculate the sales revenue reported by Division L during the most recent month.

Explanation / Answer

Divisional income statement :

Division L Division M Division Z Daytona company Sales 491000 71000 190000 230000 Variable cost 281000 56000 133000 92000 Contribution margin 210000 15000 57000 138000

  Traceable fixed costs

71000 28000 11000 32000 Segment margin 228000 46000 106000 Common fixed expense 92000 Net operating income 136000

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