5.20
Segment reporting and cost hierarchies.
(20 min)
1 Division
A
Net revenues
€1,500,000 Variable manufacturing a €400,000 Variable marketing costs
200,000
Total variable costs
600,000 Contribution margin
900,000 Fixed division costs controllable by
Division manager b 300,000 Contribution controllable by division manager
600,000 Fixed costs controllable outside division
100,000 Contribution by division
€500,000 a Total variable costs
€600,000
Variable marketing and admin. costs
200,000
Variable manufacturing cost
€400,000 b Total traceable costs to Division A
€1,000,000
Total variable costs
600,000
Total fixed costs traceable to Division A
400,000
Fixed costs controllable outside division
100,000
Fixed costs controllable by division manager
€300,000
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