Bluegrass, Inc., which is headquartered in Atlanta, operates a chain of 225 clothing stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Jacksonville, Florida:
Specify store maintenance as a fixed costs. Adopt the following language." Jacksonville's store maintenance costs as agreed upon in yearly maintenance contract negotiated by Jacksonville's manager."
Required:
Analyze each of the costs and determine whether the cost affects Jacksonville's segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Bluegrass, Inc. Place an "X" in the appropriate cell(s).

Question

Bluegrass, Inc., which is headquartered in Atlanta, operates a chain of 225 clothing stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Jacksonville, Florida:  
Specify store maintenance as a fixed costs. Adopt the following language." Jacksonville's store maintenance costs as agreed upon in yearly maintenance contract negotiated by Jacksonville's manager."
Required:
Analyze each of the costs and determine whether the cost affects Jacksonville's segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Bluegrass, Inc. Place an "X" in the appropriate cell(s).

Quizplus · Accepted Answer

The Answer of Bluegrass, Inc., which is headquartered in Atlanta, operates a chain of 225 clothing stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Jacksonville, Florida:  
Specify store maintenance as a fixed costs. Adopt the following language." Jacksonville's store maintenance costs as agreed upon in yearly maintenance contract negotiated by Jacksonville's manager."
Required:
Analyze each of the costs and determine whether the cost affects Jacksonville's segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Bluegrass, Inc. Place an "X" in the appropriate cell(s).