Remember to include variable gross profit gross segment, Operation Management

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Remember to include variable gross profit gross segment

Business Logistics Homework 5 Questions - SHOW ALL WORK

Complete the Contribution Margin Income Statement for two customers based on the following information:

a. Assume indirect costs are $55,000 and cannot be traced to a specific segment.

b. Calculate the total net profit.

c. Remember to include variable gross profit, gross segment contribution, net segment contribution, total net profit, and net segment contribution ratio.

d. Which firm has the better net segment contribution ratio and why?

Company A Company B

Revenue - $250,000 Revenue - $310,000

Variable Direct Cost - $19,000 Variable Direct Cost - $28,000

Fixed Direct Cost - $54,000 Fixed Direct Cost - $46,000

Variable CoGS - $68,000 Variable CoGS - $65,000

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Operation Management: Remember to include variable gross profit gross segment

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