Danner Co. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. $\begin{array}{lccc}
\text { Operating Data }&\text { Women's Shoes }&\text { Men's Shoes }&\text { Children's Shoes }\
\hline\text { Contribution margin } & \$ 280,000 & (3) & \$ 220,000 \
\text { Controllable fixed costs } & 130,000 & (4) & (5) \
\text { Controllable margin } & (1) & \$ 90,000 & 96,000 \
\text { Sales } & 800,000 & 480,000 & (6) \
\text { Variable costs } & (2) & 330,000 & 250,000
\end{array}$ Instructions
(a) Compute the missing amounts. Show computations.
(b) Prepare a responsibility report for the Women's Shoe Division assuming (1) the data are for the month ended June 30 2016 and (2) all data equal budget except variable costs which are $20000 over budget.

Question

Danner Co. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. $\begin{array}{lccc}
\text { Operating Data  }&\text { Women's Shoes  }&\text { Men's Shoes }&\text { Children's Shoes }\
\hline\text { Contribution margin } & \$ 280,000 & (3) & \$ 220,000 \
\text { Controllable fixed costs } & 130,000 & (4) & (5) \
\text { Controllable margin } & (1) & \$ 90,000 & 96,000 \
\text { Sales } & 800,000 & 480,000 & (6) \
\text { Variable costs } & (2) & 330,000 & 250,000
\end{array}$ Instructions
(a) Compute the missing amounts. Show computations.
(b) Prepare a responsibility report for the Women's Shoe Division assuming (1) the data are for the month ended June 30 2016 and (2) all data equal budget except variable costs which are $20000 over budget.

Quizplus · Accepted Answer

The Answer of Danner Co. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. $\begin{array}{lccc}
\text { Operating Data  }&\text { Women's Shoes  }&\text { Men's Shoes }&\text { Children's Shoes }\
\hline\text { Contribution margin } & \$ 280,000 & (3) & \$ 220,000 \
\text { Controllable fixed costs } & 130,000 & (4) & (5) \
\text { Controllable margin } & (1) & \$ 90,000 & 96,000 \
\text { Sales } & 800,000 & 480,000 & (6) \
\text { Variable costs } & (2) & 330,000 & 250,000
\end{array}$ Instructions
(a) Compute the missing amounts. Show computations.
(b) Prepare a responsibility report for the Women's Shoe Division assuming (1) the data are for the month ended June 30 2016 and (2) all data equal budget except variable costs which are $20000 over budget.

Danner Co Has Three Divisions Which Are Operated as Profit Centers