A1 Market Incorporated has two divisions, Talbot and Heather. The following is the incomestatement for the past month: Talbot Heather Total Sales revenue $ 262,500 $ 262,500 $525, 000 Variable costs 228, 375 65, 625 294, 000 Contribution or segment margin*Footnoteasterisk $ 34, 125 $ 196, 875 $ 231,000 Common fixed costs (allocated) 101,450 101, 450 202, 900 Net operating income (loss) $ (67, 325) $ 95, 425 $ 28, 100 *Footnote asteriskNote that there are no direct fixed costs. What would Market's income (loss)be if the Talbot Division was dropped and all common fixed costs are unavoidable?

Normally, allocated fixed costs to a department or division by a corporate office are called…

Answered: Market Incorporated has two divisions,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

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Problem 16E

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Market Inc. has two divisions, Telbot and Heather Following is the Income statement for the past month 27 Total Talbot Beather $217, 500 $217,500 $435,000 195,750 65,250 261,000 21,750 152, 250 174,000 78, 300 78,300 156, 600 Sales Variable Costs Contribution Margin Fired Costs (allocated) Profit Margin $(56,550) $ 73,950 $ 17,400 What would Marker's proft margih be if the Talbot division was dropped and all fixed costs are unavoidable? Mutiole Choice $56.550 loss $4.350 loss $73.950 profit
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