$160,000 in corporate costs are allocated to the divisions based on division sales. In addition, there are $210,000 in corporate costs which cannot…
$160,000 in corporate costs are allocated to the divisions based on division sales. In addition, there are $210,000 in corporate costs which cannot reasonably be allocated to the divisions. Company has the following data for this year: Soft Drinks Div.Cider Div.Coffee Div. Sales500,0001,300,000800,000 # of units sold250,000430,000160,000 Contribution margin260,000475,000460,000 Direct fixed costs59,520377,620231,900 Avg net operating assets320,000800,000420,000 Weighted avg cost of capital17%17%17% Company has a target […]
