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Refer to the data in Exercise AH 6-3. Assume Annie's Homemade divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for 20% of mobile sales and has a variable expense ratio of 47.6%, refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for 28% of mobile sales and has a variable expense ratio of 42.0%, includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for 52% of mobile sales and has a variable expense ratio of 36.0%, includes pre-purchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales' fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales. Required: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. 2. If the Food Truck segment's unit sales grow by 20% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? 3. If the total mobile sales hold constant, but sales of Corporate Subscriptions decrease by $10,000 and sales at Catered Events increase by $10,000, then what would be the impact on profits? Complete this question by entering your answers in the tabs below. Requirement 1 Requirement 2 Requirement 3 Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. Sales Variable expenses Contribution margin Traceable fixed expenses $ Mobile 227,500 91,000 136,500 15,000 Corporate Subscriptions 0 Food Truck 0 Catered Events 0

Refer to the data in Exercise AH 6-3. Assume Annie's Homemade divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for 20% of mobile sales and has a variable expense ratio of 47.6%, refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for 28% of mobile sales and has a variable expense ratio of 42.0%, includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for 52% of mobile sales and has a variable expense ratio of 36.0%, includes pre-purchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales' fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales. Required: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. 2. If the Food Truck segment's unit sales grow by 20% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? 3. If the total mobile sales hold constant, but sales of Corporate Subscriptions decrease by $10,000 and sales at Catered Events increase by $10,000, then what would be the impact on profits? Complete this question by entering your answers in the tabs below. Requirement 1 Requirement 2 Requirement 3 Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. Sales Variable expenses Contribution margin Traceable fixed expenses $ Mobile 227,500 91,000 136,500 15,000 Corporate Subscriptions 0 Food Truck 0 Catered Events 0

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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Refer to the data in Exercise AH 6-3. Assume Annie's Homemade divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for 20% of mobile sales and has a variable expense ratio of 47.6%, refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for 28% of mobile sales and has a variable expense ratio of 42.0%, includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for 52% of mobile sales and has a variable expense ratio of 36.0%, includes pre-purchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales' fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales. Required: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. 2. If the Food Truck segment's unit sales grow by 20% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? 3. If the total mobile sales hold constant, but sales of Corporate Subscriptions decrease by $10,000 and sales at Catered Events increase by $10,000, then what would be the impact on profits? Complete this question by entering your answers in the tabs below. Requirement 1 Requirement 2 Requirement 3 Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. Sales Variable expenses Contribution margin Traceable fixed expenses $ Mobile 227,500 91,000 136,500 15,000 Corporate Subscriptions 0 Food Truck 0 Catered Events 0
Transcribed Image Text:Refer to the data in Exercise AH 6-3. Assume Annie's Homemade divides its total mobile sales into three segments. The Corporate Subscriptions segment, which accounts for 20% of mobile sales and has a variable expense ratio of 47.6%, refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for 28% of mobile sales and has a variable expense ratio of 42.0%, includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for 52% of mobile sales and has a variable expense ratio of 36.0%, includes pre-purchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales' fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales. Required: 1. Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. 2. If the Food Truck segment's unit sales grow by 20% and all else holds constant, then what would be the impact on profits (rounded to the nearest dollar)? 3. If the total mobile sales hold constant, but sales of Corporate Subscriptions decrease by $10,000 and sales at Catered Events increase by $10,000, then what would be the impact on profits? Complete this question by entering your answers in the tabs below. Requirement 1 Requirement 2 Requirement 3 Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events. Sales Variable expenses Contribution margin Traceable fixed expenses $ Mobile 227,500 91,000 136,500 15,000 Corporate Subscriptions 0 Food Truck 0 Catered Events 0
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