SLP4 ACC202
RESPONSIBILITY ACCOUNTING FOR COST, PROFIT AND INVESTMENT CENTERS
The following data pertain to the operating revenues and expenses for California, Inc. for 20XX.
| Los Angeles
(LA) Segment |
San Francisco
(SF) Segment |
Total | |
| Sales | $180,000 | $360,000 | $540,000 |
| Variable expenses | 96,000 | 240,000 | 336,000 |
| Direct fixed expenses | 24,000 | 30,000 | 54,000 |
| Indirect fixed expenses | 72,000 |
Assets (investment) used to generate operating income for the two segments are shown below.
| Los Angeles
Segment |
San Francisco
Segment |
|
| Assets directly used by and identified with the segment | $180,000 | $360,000 |
- Prepare a segmented income statement in good format showing the contribution margin of each segment, the contribution to indirect expenses of each segment, and the total income of California, Inc.
- Determine the return on investment for evaluating (1) the earning power of the entire company and (2) the performance of each segment.
- Comment on the results of part (b).
SLP Assignment Expectations
Show computations in good format and explain answers as required. Excel is a great tool to make computations and present financial information in an easy-to-understand format. Write comments below the computations in Excel. Submit only the Excel file. Both content and the clarity of the presentation will be evaluated for grading purposes.
