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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