Task: Wonder Inc.'s income statement for June is given below:
During June, the sales clerks in Division F received salaries totaling $35,000. Assume that during July the salaries of these sales clerks are discontinued and instead they are paid a commission of 18% of sales. If sales in Division F increase by $65,000 as a result of this change, the July segment margin for Division F should be:
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Total
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Division F
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Division L
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Sales...........................................
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$400,000
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$220,000
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$180,000
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Variable expenses................
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204.000
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132.000
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72.000
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Contribution margin.............
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196,000
|
88,000
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108,000
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Traceable fixed expenses......
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127.000
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55.000
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72,000
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Segment margin..................
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69,000
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$33,01/0
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1.311,000
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Common fixed expense........
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35,000
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|
|
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Net operating income...........
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S 34,000
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