The following information was taken from the records of Baltimore Branch of Unilever Company pertaining to its operationn for the year just ended Sales Revenue $3,500,000 Salary and Wages Expense 480,000 Utilities Expense 140,000 Repairs and Maintenance * Transportation Expense Share in Corporate Overhead Costs Real Property Tax 75,000 8,000 140,000 25,000 Cost of Goods Sold 1,200,000 Permits and Licenses 7,000 Advertising Expense (Based on Annual Contract) 80,000 Sales Commission 70,000 With approval of manager The land wherein the Baltimore Branch is situated is owned by Unilever and the company is detemined to maintain the property regardless whether Baltimore will be closed or not. The salary and wages account includes the branch manager's annual salary amounting to $120,000. The manager is in-charge of hiring of people and setting the salaries. The store's operating hours are fixed at 8 hours a day. Transportation expense is incurred by the branch based on the customers' requests subject to the approval of the branch manager. Required: 1. How much is the segment's contribution margin? 2. How much is the segment's controllable margin? 3. How much is the segment margin of Baltimore Branch?
The following information was taken from the records of Baltimore Branch of Unilever Company pertaining to its operationn for the year just ended Sales Revenue $3,500,000 Salary and Wages Expense 480,000 Utilities Expense 140,000 Repairs and Maintenance * Transportation Expense Share in Corporate Overhead Costs Real Property Tax 75,000 8,000 140,000 25,000 Cost of Goods Sold 1,200,000 Permits and Licenses 7,000 Advertising Expense (Based on Annual Contract) 80,000 Sales Commission 70,000 With approval of manager The land wherein the Baltimore Branch is situated is owned by Unilever and the company is detemined to maintain the property regardless whether Baltimore will be closed or not. The salary and wages account includes the branch manager's annual salary amounting to $120,000. The manager is in-charge of hiring of people and setting the salaries. The store's operating hours are fixed at 8 hours a day. Transportation expense is incurred by the branch based on the customers' requests subject to the approval of the branch manager. Required: 1. How much is the segment's contribution margin? 2. How much is the segment's controllable margin? 3. How much is the segment margin of Baltimore Branch?
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you