How much is the net operating income contributed to the company by Department A and B?Using the data above, what is the segment margin of Department A and B? WHOLE COMPANYDEPARTMENT ADEPARTMENT BVaniable Manufacturingcost of goods soldP 400,000P 180,000P220,000President's SalaryFactory Supervision100,00090,00050,00040,000CostsSales Revenue1,000,000600,000400,000Variable Selling and130,00070,00060,000Administrative CostsFixed costs controllableby others120,00070,00050,000

Formula: Segment Margin= Segment Revenue- Segment Cost Segment Margin (%)= Segment Revenue-Segment…

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what is the segment margin of Department A and B?

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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Question

How much is the net operating income contributed to the company by Department A and B?

Using the data above, what is the segment margin of Department A and B?

WHOLE COMPANY
DEPARTMENT A
DEPARTMENT B
Vaniable Manufacturing
cost of goods sold
P 400,000
P 180,000
P220,000
President's Salary
Factory Supervision
100,000
90,000
50,000
40,000
Costs
Sales Revenue
1,000,000
600,000
400,000
Variable Selling and
130,000
70,000
60,000
Administrative Costs
Fixed costs controllable
by others
120,000
70,000
50,000

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