Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 2020, it compiled the following budgeted data: Sales (in units) Price (per unit) Variable costs per unit: Direct materials. Direct labour Overhead Shipping Sales commissions Direct fixed costs: Salaries Utilities Depreciation Common fixed costs: Corporate salaries Building depreciation Legal & accounting Other $ $ High-end Speakers 250,000 1,600 440 110 70 50 60 $ $ Personal Computers 460,000 1,160 $ 430 $ 150 140 90 100 $42,550,000 $24,500,000 28,510,000 22,690,000 40,790,000 Handheld Devices 350,000 285 50 20 40 2 9 $24,380,000 7,570,000 57,390,000 18, 290,000 Total $20,220,000 16,870,000 25,000,000 8,860,000 Required: 1. & 2. Prepare a segmented performance report; Compute the contribution margin percentage and segment margin percentage. (Round "Percentage" answers to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).)
Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3) handheld devices. For 2020, it compiled the following budgeted data: Sales (in units) Price (per unit) Variable costs per unit: Direct materials. Direct labour Overhead Shipping Sales commissions Direct fixed costs: Salaries Utilities Depreciation Common fixed costs: Corporate salaries Building depreciation Legal & accounting Other $ $ High-end Speakers 250,000 1,600 440 110 70 50 60 $ $ Personal Computers 460,000 1,160 $ 430 $ 150 140 90 100 $42,550,000 $24,500,000 28,510,000 22,690,000 40,790,000 Handheld Devices 350,000 285 50 20 40 2 9 $24,380,000 7,570,000 57,390,000 18, 290,000 Total $20,220,000 16,870,000 25,000,000 8,860,000 Required: 1. & 2. Prepare a segmented performance report; Compute the contribution margin percentage and segment margin percentage. (Round "Percentage" answers to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Y.13.
Transcribed Image Text:Less: Variable costs:
Total variable expenses
Less: Direct fixed costs
Total fixed expenses
Less: Common fixed costs
Total common fixed costs
Show Transcribed Text
Less: Common fixed expenses
Allocated portion
Net income (loss)
High-end
Speakers
S
S
3
PRAIRIE ELECTRONICS
Segment Performance Report
0
High-end
Speakers
0
Ç
%
%
Profit Centres
Personal
Computers
$
S
PRAIRIE ELECTRONICS
0
Profit Centres
Personal
Computers
0
%
%
Handheld
Devices
S
S
0
Handheld
Devices
0
%
%
S
S
3-a. Allocate the common fixed expenses equally to the three segments and prepare a performance report. (Negative amounts
should be indicated with a minus sign.)
S
Total
Company
0
Total
Company
0
0
Transcribed Image Text:Prairie Electronics, located in Regina, manufactures three product lines: (1) high-end speakers, (2) personal computers, and (3)
handheld devices. For 2020, it compiled the following budgeted data:
Sales (in units)
Price (per unit)
Variable costs per unit:
Direct materials
Direct labour
Overhead
Shipping
Sales commissions
Direct fixed costs:
Salaries
Utilities
Depreciation
Common fixed costs:
Corporate salaries
Building depreciation.
Legal & accounting
Other
$
$
High-end
Speakers
250,000
1,600
440
110
70
50
60
$
$
Personal
Computers
460,000
1,160
430
150
140
90
100
$42,550,000
$24,500,000
28,510,000 22,690,000
40,790,000
$
$
Handheld
Devices
350,000
285
50
20
40
2
9
$24,380,000
7,570,000
57,390,000 18,290,000
Total
$20,220,000
16,870,000
25,000,000
8,860,000
Required:
1. & 2. Prepare a segmented performance report; Compute the contribution margin percentage and segment margin percentage.
(Round "Percentage" answers to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).)
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