Contribution Margin Assignment | Top Universities

Can you Follow the Excel layout so its easier to read? (Fill in the blanks) Alternate problem C Student Painters, Inc., operates two segments, interior, and exterior. The revenue and expense data follow: Interior Exterior Total $335,700 553,800 $889,500 Net sales Direct expenses:* Cost of goods sold Selling 186,000 31,800 9,000 2,400 Indirect expenses (all fixed): 282,000 468,000 27,000 6,000 6,600 58,800 15,000 9,000 Administrative Uncollectible accounts Selling Administrative 126,000 156,000 All the direct expenses are variable except administrative expense, which is fixed. Prepare a schedule showing the contribution margin, the contribution to indirect expenses of each segment, and net income for the company as a whole.

Do not allocate indirect expenses to the segments. a. b. Assume that indirect selling expenses are to be allocated to segments on the basis of net sales (round to the nearest % ) and that indirect administrative expenses are to be allocated on the basis of direct administrative expenses. Prepare a statement (starting with the contribution to indirect expenses from part a) showing the allocation of indirect expenses and the net income of each segment c. Comment income contribution of the segments on the appropriateness of the income amounts shown in parts (a) and (b) for determining the Alt. Problem C- Segment Income Statements 4 Part a: Student Painters, Inc. Segment Income Statements 6 Total Interior Exterior 7 8 Net Sales Variable Costs: 10 11 12 13 14 15 Contribution to Indirect Costs 16 Self-check 17 18 19 Net Income 20 Self-check: 21 Part b 22 23 Contribution to Indirect Costs from above 24 Indirect costs: 25 Selling expense 26 Hint? (Seg. Sales/Total Sales) x $126,000 indirect selling expense 27 Admin. Expense 28 (Seg. Direct admin /Total Direct admin) x $156,000 indirect admin expense Hint? 29 Net Income 30 Self-check: 31 32 Part c: Get Accounting homework help today