Nicholas Technologies operates two divisions. Hardware Services and Software Services. During the current month, the two divisionsreported the following results.HardwareSalesVarlable costs (as a percentage of sales)Traceable fixed costsSoftware$ 850, 00045%$ 125, 000$ 660, 00040%$ 250,000In addition, fixed costs common to both divisions amounted to $228,000.Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operationsfor the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234should be considered as 12.34%.)NICHOLAS TECHNOLOGIESResponsibility Income StatementFor the Current MonthEntire CompanyHardware Servicos DivisionSoftware Services DivisionPercent ofSalesDollarsDollarsPercent of SalesDollarsPercent of Sales

The income statement represents the net income or net loss that is calculated by deducting the…

Nicholas Technologies operates two divisions Hardware Services and Software Services. During the ce reported the following results. Hardware $ 660,000 40x Saftware Sales Variable costs (as a percentage of sales) Traceable fixed costs $ 8se, e0e 45% $ 250,000 $ 125,000

Nicholas Technologies operates two divisions Hardware Services and Software Services. During the ce reported the following results. Hardware $ 660,000 40x Saftware Sales Variable costs (as a percentage of sales) Traceable fixed costs $ 8se, e0e 45% $ 250,000 $ 125,000

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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Question

Nicholas Technologies operates two divisions. Hardware Services and Software Services. During the current month, the two divisions
reported the following results.
Hardware
Sales
Varlable costs (as a percentage of sales)
Traceable fixed costs
Software
$ 850, 000
45%
$ 125, 000
$ 660, 000
40%
$ 250,000
In addition, fixed costs common to both divisions amounted to $228,000.
Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations
for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234
should be considered as 12.34%.)
NICHOLAS TECHNOLOGIES
Responsibility Income Statement
For the Current Month
Entire Company
Hardware Servicos Division
Software Services Division
Percent of
Sales
Dollars
Dollars
Percent of Sales
Dollars
Percent of Sales

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