ECA Media has two major divisions- Social Media Games and Cell Phone Games. Data concerning those segments for January appears below: Social Media Games SALES REVENUE- P 270, 000 VARIABLE EXPENSES- P 86, 400 TRACEABLE FIXED EXPENCES-P 140 400 Cell Phone Games SALES REVENUE-P 230, 000 VARIABLE EXPENSES- P 78, 600 TRACEABLE FIXED EXPENCES- P 119, 600 Common fixed expenses (not traceable to divisions) P 50,000. Preparea segmented income statement in contribution format for ECA Media.

ECA Media has two major divisions- Social Media Games and Cell Phone Games. Data concerning those segments for January appears below: Social Media Games SALES REVENUE- P 270, 000 VARIABLE EXPENSES- P 86, 400 TRACEABLE FIXED EXPENCES-P 140 400 Cell Phone Games SALES REVENUE-P 230, 000 VARIABLE EXPENSES- P 78, 600 TRACEABLE FIXED EXPENCES- P 119, 600 Common fixed expenses (not traceable to divisions) P 50,000. Preparea segmented income statement in contribution format for ECA Media.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Corporation has three service department with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 Number of Copies Accounting 500,000 Number of invoices processed Personnel Department 400,000 Number of employees ABC has three operating divisions (organized as profit centers), mirco, macro, and super. Their revenue, cost and activity information are-as follows: Mirco Macro Super Direct Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies 20,000 30,000 50,000 Number of invoices 700 800 500 processed Number of employees 130 145 125 How much of the $500,000 total cost from the accounting department would be allocated to the super division?
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Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Sales Variable expenses Contribution margin Traceable fixed expenses: Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income Sales Traceable fixed expenses: Total Company R 3,675,000 1,745,500 1,929,500 Traceable fixed expenses: R Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Total traceable fixed expenses 634,000 449,000 233,000 1,316,000 Common fixed expenses: Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines.…
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