60.1K

Verified Solution

Link Copied!

Flint, Ltd, manufactures boats and personal watercraft. The company operates three separate divisions: yachts, sailboats, and jet skis. The company's latest income statement is presented by product line as follows: Yachts Jet Skis Total Sailboats $ 24,640,000 Sales revenue $ 62,485.000 $ 6,268,000 $ 92,393,000 Variable cost of goods sold 31,809.000 13,930,000 3.641,000 49,380,000 Fioved cost of goods sold 9,001,000 5,020,000 700,000 14,721.000 21,675.000 5,690,000 1,927,000 Gross profit Variable operating expenses Foed operating expenses 29,292,000 10,390,000 2,005.000 1,520,000 865,000 4,035,000 1,020,000 324,000 5,379,000 Allocated corporate costs 3,005.000 2,032,000 1,001,000 4,038,000 Operating income $ 4,630,000 $ 1,118,000 $ (263,000 $ 7,485.000 (a) Prepare a segment margin income statement showing each of the three divisions. Fived cost of goods sold and fixed operating expenses can be traced to each product line. (If the amount is negative then enter with a negative sign preceding the number, eg -5,125 or parenthesis, es. (5,1251) Yachts Sailboats Sales revenue 62485000 24640000 $[ Less Variable expenses Contribution margin -31809000 -13930000 1 Variable expenses 30676000 10710000 Contribution margin -3005000 -1520000 Traceable foed expenses Segment margin -13036000 -3040000 [ Common foed expenses 9635000 3150000 [ Operating income -3005000 -2032000 [ Operating Income Variable expenses

Answer & Explanation Solved by verified expert

See Answer