Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results. Hardware Software Sales $ 660,000 $ 720,000 Variable costs (as a percentage of sales) 40 % 45 % Traceable fixed costs $ 250,000 $ 125,000 In addition, fixed costs common to both divisions amounted to $229,000. 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 operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results. Hardware Software Sales $ 660,000 $ 720,000 Variable costs (as a percentage of sales) 40 % 45 % Traceable fixed costs $ 250,000 $ 125,000 In addition, fixed costs common to both divisions amounted to $229,000. 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%.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results.
| Hardware | Software | ||||||
| Sales | $ | 660,000 | $ | 720,000 | |||
| Variable costs (as a percentage of sales) | 40 | % | 45 | % | |||
| Traceable fixed costs | $ | 250,000 | $ | 125,000 | |||
In addition, fixed costs common to both divisions amounted to $229,000.
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%.)
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