The two top selling segments of the Small Adorable Animal Depot are the Bunny segment and the Sloth segment. The Bunny segment sold 5,000 units while the Sloth segment sold 6,200 units in the prior period. The Bunny segment generated $210,000 of sales revenue and the Sloth segment generated $185,000 of sales revenue. The following information is available for the company's prior period:
The two top selling segments of the Small Adorable Animal Depot are the Bunny segment and the Sloth segment. The Bunny segment sold 5,000 units while the Sloth segment sold 6,200 units in the prior period. The Bunny segment generated $210,000 of sales revenue and the Sloth segment generated $185,000 of sales revenue. The following information is available for the company's prior period:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
2
Transcribed Image Text:The two top selling segments of the Small Adorable Animal Depot are the Bunny segment and the
Sloth segment. The Bunny segment sold 5,000 units while the Sloth segment sold 6,200 units in
the prior period. The Bunny segment generated $210,000 of sales revenue and the Sloth segment
generated $185,000 of sales revenue. The following information is available for the company's prior
period:
CM%
Total Fixed Costs
Period Costs
Product Costs
Bunny
35%
$87,000
$69,000
$18,000
Sloth
45%
Which of the following statements is correct?
$65,000
$15,000
$50,000
Of the Total Fixed Costs, 22% are direct fixed costs. The remaining Fixed Costs are common fixed
costs that have been allocated to their respective segments.
The Sloth segment should be evaluated on a segment margin of $68,950.
Operating income for the Bunny segment is $1,360.
Total segment margin for both the Bunny and Sloth segments is $4,750.
Total operating income for the period is $86,250.
Total traceable costs total $14,300 for the Sloth segment.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education