Question

Triumph Company has three divisions, L, O, and T. The following
information is available for the most recent month:

Triumph Company:
Sales revenue .............. $513,000
Total fixed costs .......... $125,770
Net income ................. $ 57,300

Division L:
Sales revenue .............. $163,000
Segment margin ............. $ 20,810

Division O:
Contribution margin ........ $ 30,150
Traceable fixed costs ...... $ 14,270
Variable cost ratio ........    85%

Division T:
Variable costs ............. $ 41,720
Segment margin ............. $ 67,370

Calculate the traceable fixed costs reported by Division L
during the most recent month.

Answer 1

With show formulas

Particulars Triumph Company 5,13,000 Division L Divison O Division T Sales Revenue 1,63,000 2,01,000 1,70,850 30,150 14,270 15,880 1,49,000 Variable cost 1,17,360 41,720 3,29,930 Contribution Fixed cost 1,07,280 39,910 67,370 45,640 1,83,070 1,25,770 57,300 71,590 -25,950 Profit

2 3 Particulars 4Sales Revenue Triumph Company Division L Divison O Division T ЕC6/15% -E4-C4-B4 163000 513000 5 Variable cost -E5-D5-C5 41720 =E4-E6 ЕC4-С6 6 Contribution =E6-D6-C6 30150 D4-D5 -E8+E7 7 Fixed cost ЕВ6-B8 14270 =D6-D8 125770 Profit 67370 -E8-D8-C8 ЕС6-C7 57300 10 1