Kraft Bowlen owns two sports franchises-the Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for the coming year. Bladers Ballers Sales $80,000,000 $180,000,000 Variable cost of goods sold 10,000,000 30,000,000 Direct fixed overhead 20,000,000 100,000,000 A sales commission of 5% of sales revenue is paid for each of the two sports franchises. Direct fixed selling and administrative expense was estimated to be $4,000,000 for the Bladers franchise and $10,000,000 for the Ballers franchise. Common fixed overhead associated with owning the franchises was estimated to be $18,000,000; common selling and administrative expense was estimated to be $8,000,000. Required: Prepare a segmented income statement for Kraft Bowlen for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Kraft Bowlen Segmented Income Statement For the Coming Year Bladers Ballers Total Sales v Less variable expenses: Variable cost of goods sold
Kraft Bowlen owns two sports franchises-the Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for the coming year. Bladers Ballers Sales $80,000,000 $180,000,000 Variable cost of goods sold 10,000,000 30,000,000 Direct fixed overhead 20,000,000 100,000,000 A sales commission of 5% of sales revenue is paid for each of the two sports franchises. Direct fixed selling and administrative expense was estimated to be $4,000,000 for the Bladers franchise and $10,000,000 for the Ballers franchise. Common fixed overhead associated with owning the franchises was estimated to be $18,000,000; common selling and administrative expense was estimated to be $8,000,000. Required: Prepare a segmented income statement for Kraft Bowlen for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Kraft Bowlen Segmented Income Statement For the Coming Year Bladers Ballers Total Sales v Less variable expenses: Variable cost of goods sold
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5MC: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to...
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