Graduate Essay Writers
Only the most qualified writers are selected to be a part of our research and editorial team, with each possessing specialized knowledge in specific subjects and a background in academic writing.
Get Similar Asssignment Answers & Custom Paper Writing Services
To hire a writer, fill the order form with details from your nursing assessment task brief.
Posted: April 10th, 2022
Making contribution format segmented income statements – Business Management
Making contribution format segmented income statements – Business Management
The most recent monthly contribution format income statement for Raven Company is given below:
Raven Company
Income Statement
For the Month Ended May 31
Sales $900,000 100.0%
Variable expenses 408,000 45.3
Contribution 492,000 54.7
Fixed expenses 465,000 51.7
Net operating income $ 27,000 3.0%
Management is disappointed with the company’s performance and is wondering what can be done to improve profits. By examining sales and cost records the following is determined:
a. The company is divided into two sales territories-Central and Eastern. The Central Territory recorded $400,000 in sales and $208,000 in variable expenses during May. The remaining sales and variable expenses were recorded in the Eastern Territories. Fixed expenses of $160,000 and $130,000 are traceable to the Central and Eastern Territories, respectively. The rest of the fixed expenses are common to the two territories.
b. The company is the exclusive distributor for two products- Haws and Paws. Sales of Haws and Paws totaled to $100,000 and $300,000, respectively, in the Central Territory during May. Variable expenses are 25% of the selling price for Haws and 61% for Paws. Cost records show that $60,000 of the Central Territory’s fixed expense is traceable to Haws and $54,000 to Paws, with the remainder common to the two products.
1. Prepare contribution format segmented income statements, the first showing the total company broken down between sales territories and then showing the Central Territory broken down by product line. Show both Amount and Percent columns for the company in total and for each segment. Round percentage computations to one decimal place.
2. After reviewing the Central Territory segmented by sales territory, and find what points revealed by this statement should be brought to management attention.
3. After viewing the Central Territory segmented by product line, what points should be brought to management attention?
Tags: nursing essay writing services, genuine essay writing service uk, essay writing service uk free, custom research paper writing service, cheap essay writing service ukWhy Seek Our Custom Writing Services
Every Student Wants Quality and That’s What We Deliver
Affordable Prices
Our prices strike the perfect balance between affordability and quality. We offer student-friendly rates that are competitive within the industry, without compromising on our high writing service standards.
100% Plagiarism-Free
No AI/chatgpt use. We write all our papers from scratch thus 0% similarity index. We scan every final draft before submitting it to a customer.
How it works
When you decide to place an order with Nursing Study Bay, here is what happens:
For Similar Answers, Custom Essay Writing & Assignment Help Services
Find an expert by filling an order form for your nursing paper. We write AI-plagiarism free essays and case study analysis. Anytime!