Business Logistics Homework 5 Questions - SHOW ALL WORK
Complete the Contribution Margin Income Statement for two customers based on the following information:
a. Assume indirect costs are $55,000 and cannot be traced to a specific segment.
b. Calculate the total net profit.
c. Remember to include variable gross profit, gross segment contribution, net segment contribution, total net profit, and net segment contribution ratio.
d. Which firm has the better net segment contribution ratio and why?
Company A Company B
Revenue - $250,000 Revenue - $310,000
Variable Direct Cost - $19,000 Variable Direct Cost - $28,000
Fixed Direct Cost - $54,000 Fixed Direct Cost - $46,000
Variable CoGS - $68,000 Variable CoGS - $65,000