Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows.

Part 1

Compute the missing amounts.

Operating Data		Womens Shoes			Mens Shoes			Childrens Shoes
Contribution margin		$312,120			$	(3)		$208,080
Controllable fixed costs		115,600				(4)			(5)
Controllable margin			(1)		104,040			109,820
Sales		693,600			520,200				(6)
Variable costs			(2)		369,920			289,000

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Part 2

Prepare a responsibility report for the Womens Shoes Division assuming (1) the data are for the month ended June 30, 2020, and (2) all data equal budget except variable costs which are $5,780 over budget.

HORATIO INC. Womens Shoe Division Responsibility Report For the Month Ended June 30, 2020
						Difference
		Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs		$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs							FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs		$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable

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