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Assignment 5.1, Problem 9A2, page 375. It should look like Exhibit 9.5 page 362! PLEASE USE THE TABLE PROVIDED TO FILL IN THE ANSWERS

4	A	B	C	D	E	F	G	H	I	J	K
5
6	A	Company as a whole	Break down of 2 divisons		Break down of Waterloo Division			Break down of Cedar Rapids Division
7			waterloo divisions	Cedar rapids division	Not allocated	Downtown	Summer	Not allocated	Downtown	Solon	Airport
8
9	net sales	8,000	3,200				800 =B9*0.1		2,400 =B9*0.3
10	Variable costs:
11	Cost of merchandise sold (.4375)	3,500	1, 400 =C9*0.4375				350 =G9*0.4375		1,050 =I9*0.4375
12	Variable operating expenses	=SUM(C12:D12)	=SUM(I12:K12)			=F9*0.1			240 =I9*0.1		=K9*0.05
13	Total variable costs	=SUM(EB11:B12)				=SUM(F11:F12)	350=SUM(G11:G12)		1,290 =SUM(I11:I12)	0 =SUM(J11:J12)
14	Contribution margin	=B9-B13	=C9-C13			=F9-F13			1,110 =I9-I13		=K9-K13
15	Less: Fixed costs	335 =SUM(C15:D15)		335 =SUM(H15:K15)		125	40 =C20*0.25	210	125
16	controllable by
17	segment managers
18	= Contribution controllable			=D14-D15		=F14-F15				=J14-J15
19	by segment managers
20	Less: Fixed costs	490 =SUM(C20:D20)	140	350	35 =C20*0.25	70 =E20*0.5		70 =D20*0.2	70 =D20*0.2	105 =D20*0.3	105 =D20*0.3
21	controllable by others
22	Contribution by segment	=B18-B20		=D18-D20		=F18-F20		=H18-H20			=K18-K20
23
24	Less: Unallocated costs	110
25	Income before income	=B22-B24 should = 2300
26	taxes

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