Response to the following :
Segment-Margin Ratio
Refer to the data in problem. Compute the segment-margin ratio.
Problem:
Segment Margin Statement
The company reports the following costs and revenues for one of its segments:
Net sales revenue......................................$728,000
Cost of goods sold......................................416,000
Selling and administrative costs...............104,000
Advertising costs.........................................62,400
Insurance costs...........................................82,000
Of these costs, cost of goods sold and selling and administrative costs are variable, advertising is a direct fixed cost, and insurance is an indirect fixed cost. Using this information, prepare a segment margin statement for this segment.