Gonzales Manufacturing Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows.
|
Operating Data |
Women’s Shoes |
Men’s Shoes |
Children’s Shoes |
|
Contribution margin |
$240,000 |
(3) |
$180,000 |
|
Controllable fixed costs |
100,000 |
(4) |
(5) |
|
Controllable margin |
(1) |
$ 90,000 |
96,000 |
|
Sales |
600,000 |
450,000 |
(6) |
|
Variable costs |
(2) |
330,000 |
250,000 |
Instructions
(a) Compute the missing amounts. Show computations.
(b) Prepare a responsibility report for the Women’s Shoe Division assuming (1) the data are for the month ended June 30, 2010, and (2) all data equal budget except variable costs which are $10,000 over budget.