Compute the segment margin of segment C. Compute for the increase/(decrease) of Unbreakable Company if Segment U is dropped.
Compute the segment margin of segment C. Compute for the increase/(decrease) of Unbreakable Company if Segment U is dropped.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13E
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Question
Unbreakable Company have segment C and segment U. During the past years, 50,000 and 20,000 were produced from segment C and U respectively. Fixed cost totaled P225,000 of which 90,000 can be avoided if segment U is dropped and P45,000 can be avoided if segment C is dropped. The selling price for segment C and U are P25 and P50, respectively. The variable cost of segment C and U are P15 and P45, respectively.
Requirments:
- Compute the segment margin of segment C.
- Compute for the increase/(decrease) of Unbreakable Company if Segment U is dropped.
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