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02. Award: 1.00 point La Mesa Foods has the following data for its two divisions for the year: Revenues Cost of sales Allocat
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Answer #1
a Division
Uno Dos
Revenues $                6,00,000 $                  19,00,000
Less: Cost of Sale $                3,84,750 $                     9,50,000
Gross Profit $                2,15,250 $                     9,50,000
Operating Expenses:
Allocated Corporate overhead $                    36,000 $                     1,14,000
Other general and administration $                    79,250 $                     5,50,000
Total $                1,15,250 $                     6,64,000
Operating Profit $                1,00,000 $                     2,86,000
Tax (30%) $                    30,000 $                        85,800
Net Profit $                    70,000 $                     2,00,200
b Gross Margin ratio (Gross profit/Revenues) in % 35.88% 50.00%
or                             0.36                                 0.50
c Operating Margin ratio (Operating profit/Revenues) in % 16.67% 15.05%
or                             0.17                                 0.15
d Profit Margin ratio (Net profit/Revenues) in % 11.67% 10.54%
or                             0.12                                 0.11

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Formula

Uno 600000 384750 =D4-D5 Division Dos 1900000 950000 =E4-E5 Revenues Less: Cost of Sale Gross Profit Operating Expenses: Allo

А в Division Dos 6,00,000 $ 3,84,750 $ 2,15,250 $ 19,00,000 9,50,000 9,50,000 Revenues Less: Cost of Sale Gross Profit Operat

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