| Operating Data | Women’s Shoes | Men’s Shoes | Children’s Shoes | ||||||
| Contribution margin | $270,540 | $ |
(3) | $180,360 | |||||
| Controllable fixed costs | 100,200 | |
(4) | |
(5) | ||||
| Controllable margin | |
(1) | 90,180 | 95,190 | |||||
| Sales | 601,200 | 450,900 | |
(6) | |||||
| Variable costs | |
(2) | 320,640 | 250,500 | |||||
Prepare a responsibility report for the Women’s Shoes Division assuming (1) the data are for the month ended June 30, 2017, and (2) all data equal budget except variable costs which are $5,010 over budget.
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| HORATIO INC. Women’s Shoe Division Responsibility Report For the Month Ended June 30, 2017 |
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| Operating Data | Women’s Shoes | Men’s Shoes | Children’s Shoes | |
| Contribution margin |
|
$130,260 | 180360 | |
|
100200 | 40080 | 85170 | |
| Controllable margin | 170340 | 90180 | 95190 | |
| Sales | 601200 | 450900 | 430860 | |
| Variable costs | 330,660 | 320640 | 250500 | |
Working notes for the above answer is as under
a)
(1)Controllable margin ($270,540
– $100200)$170340
(2)Variable costs ($601,200– $270,540) $ 330,660
(3)Contribution margin ($450900 – $320640)130,260
(4)Controllable fixed costs ($130,260– $90,180) 40080
(5)Controllable fixed costs ($180360 – $95190) 85170
(6)Sales ($250,500 + $180360)430860
