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Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments R520,000 R 92,000 Leather Division Product Lines Shoes R900,000 R124,000 Handbags R540,000 R127,000 R 42,000 R 31,000 60% R 47,000 R 68,000 40% R 75,000 R 27,000 59% Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Answer is not complete. Product Line Leather Garments Shoes Handbags Division Sales R 1,960,000 R Variable expenses 990,600 Contribution margin 969,400 520,000 312,000 208,000 R 900,000 R 540,000 360,000 318,600 540,000 221,400 Traceable fixed expenses: Advertising R 343,000 R Selling & administrative R 164,000 R Depreciation RX 126,000 R Total traceable fixed expenses 633,000 336,400 R 92,000 R 42,000 R 31,000 R 165,000 43,000 R 124,000 R 127,000 47,000 R 75,000 68,000 R 27,000 239,000 301,000 R 229,000 (7,600) Common fixed expenses: 65,000

Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments R520,000 R 92,000 Leather Division Product Lines Shoes R900,000 R124,000 Handbags R540,000 R127,000 R 42,000 R 31,000 60% R 47,000 R 68,000 40% R 75,000 R 27,000 59% Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Answer is not complete. Product Line Leather Garments Shoes Handbags Division Sales R 1,960,000 R Variable expenses 990,600 Contribution margin 969,400 520,000 312,000 208,000 R 900,000 R 540,000 360,000 318,600 540,000 221,400 Traceable fixed expenses: Advertising R 343,000 R Selling & administrative R 164,000 R Depreciation RX 126,000 R Total traceable fixed expenses 633,000 336,400 R 92,000 R 42,000 R 31,000 R 165,000 43,000 R 124,000 R 127,000 47,000 R 75,000 68,000 R 27,000 239,000 301,000 R 229,000 (7,600) Common fixed expenses: 65,000

FINANCIAL ACCOUNTING
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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Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments R520,000 R 92,000 Leather Division Product Lines Shoes R900,000 R124,000 Handbags R540,000 R127,000 R 42,000 R 31,000 60% R 47,000 R 68,000 40% R 75,000 R 27,000 59% Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Sales > Answer is not complete. Product Line Leather Garments Shoes Handbags Division R 1,960,000 R 520,000 R 900,000 R 540,000 990,600 312,000 360,000 318,600 969,400 208,000 540,000 221,400 Variable expenses Contribution margin Traceable fixed expenses: Advertising R☑ Selling & administrative RX 343,000 164,000 RX R 92,000 R 124,000 ( R 127,000 Depreciation RX 126,000 RX 42,000 31,000 R☑ 47,000 R 75,000 RX 68,000 R 27,000 Total traceable fixed expenses 633,000 165,000 239,000 229,000 336,400 R 43,000 R 301,000 R (7,600) Common fixed expenses: 65,000
Transcribed Image Text:Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments R520,000 R 92,000 Leather Division Product Lines Shoes R900,000 R124,000 Handbags R540,000 R127,000 R 42,000 R 31,000 60% R 47,000 R 68,000 40% R 75,000 R 27,000 59% Analysis shows that R65,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Sales > Answer is not complete. Product Line Leather Garments Shoes Handbags Division R 1,960,000 R 520,000 R 900,000 R 540,000 990,600 312,000 360,000 318,600 969,400 208,000 540,000 221,400 Variable expenses Contribution margin Traceable fixed expenses: Advertising R☑ Selling & administrative RX 343,000 164,000 RX R 92,000 R 124,000 ( R 127,000 Depreciation RX 126,000 RX 42,000 31,000 R☑ 47,000 R 75,000 RX 68,000 R 27,000 Total traceable fixed expenses 633,000 165,000 239,000 229,000 336,400 R 43,000 R 301,000 R (7,600) Common fixed expenses: 65,000
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