Prairie Electronics, located in Regina, manufactures threeproduct lines: (1) high-end speakers, (2) personal computers,...

3.7 Ratings (508 Votes)

Prairie Electronics
1&2 Segment Performance Report
Particulars		Profit Centers					Company as Whole
Particulars	Per Unit	High End speakers	Per Unit	Personal Computers	Per Unit	Handheld devices	Company as Whole
Sale Units		400000		610000		500000

Sales	$1,500	$60,00,00,000	$1,310	$79,91,00,000	$435	$21,75,00,000	$1,61,66,00,000
Less: Variable cost
Direct Material	$430	$17,20,00,000	$360	$21,96,00,000	$35	$1,75,00,000
Direct Labour	$100	$4,00,00,000	$80	$4,88,00,000	$50	$2,50,00,000
Overhead	$60	$2,40,00,000	$70	$4,27,00,000	$35	$1,75,00,000
Shipping	$40	$1,60,00,000	$20	$1,22,00,000	$10	$50,00,000
Sales commission	$50	$2,00,00,000	$30	$1,83,00,000	$4	$20,00,000
Total Variable costs	$680	$27,20,00,000	$560	$34,16,00,000	$134	$6,70,00,000	$68,06,00,000
Contribution		$32,80,00,000		$45,75,00,000		$15,05,00,000	$93,60,00,000
Less: Direct Fixed Costs
Salaries		$7,53,20,000		$8,16,50,000		$5,31,60,000
Utlities		$5,04,70,000		$8,50,30,000		$1,64,90,000
Depreciation		$7,21,90,000		$24,08,80,000		$3,98,80,000
Total Fixed cost		$19,79,80,000		$40,75,60,000		$10,95,30,000	$71,50,70,000
Segment Profit		$13,00,20,000		$4,99,40,000		$4,09,70,000	$22,09,30,000
Less: Common fixed cost
Corporate salaries							$4,40,80,000
Building Depreciation							$3,67,80,000
Legal& accounting							$5,45,50,000
Other							$1,49,50,000
Total Common fixed cost							$15,03,60,000
Net Profit							$7,05,70,000

Contribution Margin % (Contribution/Sales)		54.67%		57.25%		69.20%
Segment Margin %(Segment Profit/Sales)		21.67%		6.25%		18.84%

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Transcribed Image Text

1. &2.	Prepare a segmented performance report; Compute the contributionmargin percentage and segment margin percentage. (Round"Percentage" answers to 1 decimal place, (i.e., 0.123 should beconsidered as 12.3%).)

3-a.	Allocate the common fixed expenses equally to the three segmentsand prepare a performance report. (Negative amounts shouldbe indicated with a minus sign.)