Simply Sweets has provided the following relating to the most recent month (August 31, 2016) of operations,for their two main products, cookies and cupcakes. The company sold 20,000 cookies and 10,000 cupcakes.Cookies sell for $2.00 and cupcakes sell for $4.00. Other data relating to the product lines is as follows:CupcakesVariable Expenses as a % ofSalesCookie Baker Salary/monthCupcakes BakerSalary/monthAssistant Baker Salary(assists both bakers)Cashier Salary (sells bothproduct lines)Cookies37.5%15%36%50%55%$4,000$1,5001,00050%$5,000$1,5001,000In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised bothproduct lines. The company also has corporate fixed costs of $10,000 per month (to pay company president,secretary, accountant etc. and general administrative costs). These corporate fixed costs would be incurredregardless of the product lines sold. The cashier and assistant baker would continue to be employed with thecompany regardless of the product lines sold.What is the segment margin for the cupcake?

Segment reporting is the reporting of the operating segments of a company in the disclosures…

Simply Sweets has provided the following relating to the most recent month (August 31, 2016) of operations, for their two main products, cookies and cupcakes. The company sold 20,000 cookies and 10,000 cupcakes. Cookies sell for $2.00 and cupcakes sell for $4.00. Other data relating to the product lines is as follows: Cupcakes Variable Expenses as a % of Sales Cookie Baker Salary/month Cupcakes Baker Salary/month Assistant Baker Salary (assists both bakers) Cashier Salary (sells both product lines) Cookies 55% $4,000 $1,500 1,000 50% $5,000 $1,500 1,000 In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised both product lines. The company also has corporate fixed costs of $10,000 per month (to pay company president, secretary, accountant etc. and general administrative costs). These corporate fixed costs would be incurred regardless of the product lines sold. The cashier and assistant baker would continue to be employed with the company regardless of the product lines sold. What is the segment margin for the cupcake?

Simply Sweets has provided the following relating to the most recent month (August 31, 2016) of operations, for their two main products, cookies and cupcakes. The company sold 20,000 cookies and 10,000 cupcakes. Cookies sell for $2.00 and cupcakes sell for $4.00. Other data relating to the product lines is as follows: Cupcakes Variable Expenses as a % of Sales Cookie Baker Salary/month Cupcakes Baker Salary/month Assistant Baker Salary (assists both bakers) Cashier Salary (sells both product lines) Cookies 55% $4,000 $1,500 1,000 50% $5,000 $1,500 1,000 In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised both product lines. The company also has corporate fixed costs of $10,000 per month (to pay company president, secretary, accountant etc. and general administrative costs). These corporate fixed costs would be incurred regardless of the product lines sold. The cashier and assistant baker would continue to be employed with the company regardless of the product lines sold. What is the segment margin for the cupcake?

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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