Daytona Company operates three divisions, L, M, and Z. The following information
ID: 2525657 • Letter: D
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
Dayton Company Divsion L Divsion M Divsion Z Total Sales Revenue 1,60,000 1,90,000 2,30,000 5,80,000 (580000-190000-230000) Given (92000/40%) Variable Costs 56,000 1,33,000 92,000 2,81,000 (281000-133000-92000) (190000-57000) Given Given Contribution Margin 1,04,000 57,000 1,38,000 2,99,000 (160000-56000) Given (230000-138000) (71000+44000) Traceable Fixed Costs 28,000 11,000 32,000 71,000 Given (57000-46000) (138000-106000) (28000+11000+32000) Segment Margin 76,000 46,000 1,06,000 2,28,000 (104000-28000) Given Given (136000+92000) Common Fixed Costs 92,000 Given Net income 1,36,000 Given Explanation Segment Margin = 136000+92000 =228000 Hint :Start with Divison Z then Division M and then total company amount to be calculated and balance amounts will be Divison L
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