Question

Swifty Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Compute the missing amounts. Operating Data Women’s Shoes Men’s Shoes Children’s Shoes Contribution margin $304,020 $ (3) $202,680 Controllable fixed costs 112,600 (4) (5) Controllable margin (1) 101,340 106,970 Sales 675,600 506,700 (6) Variable costs (2) 360,320 281,500 Prepare a responsibility report for the Women’s Shoes Division assuming (1) the data are for the month ended June 30, 2020, and (2) all data equal budget except variable costs which are $5,630 over budget. SWIFTY INC. Women’s Shoe Division Responsibility Report For the Month Ended June 30, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $

Answer 1

(1) Controllable margin $ 191420

(2) Variable Costs$ 371580

(3) Contribution Margin $ 146380

(4)Controllable fixed costs $45,040

(5) Controllable fixed costs $ 95710

(6) Sales $ 484,180

Step-by-step explanation:

The workings have been done to show the results.

Swifty Inc.

Women’s Shoes Men’s Shoes Children’s Shoes

Sales 675,600 506,700 (6) $ 484180

Variable costs (2)$ 371580 360,320 281,500

C. Margin $304,020 $ (3)146380 $202,680

(2) Variable Costs = Sales - Contribution Margin= 675600- 304020=

$ 371580

(3) Contribution Margin= Sales - Variable Costs = 506,700-360,320 = $ 146380

(6) Sales = Contribution Margin + Variable Costs= 281,500 +$202,680 = $ 484,180

Swifty Inc.

Women’s Shoes Men’s Shoes Children’s Shoes

Sales 675,600 506,700 $ 484180

Variable costs $ 371580 360,320 281,500

C. Margin $304,020 $ 146380 $202,680

Controllable

fixed costs 112,600 (4) $45,040 (5) $ 95710

Controllable margin (1) $ 191420 101,340 106,970

(1) Controllable margin=Contribution Margin-Controllable fixed costs

= $ 304,020 -112,600 =$ 191420

(4) Contribution Margin- Controllable margin=Controllable fixed costs

$ 146380 - 101,340 = $45,040

(5) Contribution Margin- Controllable margin=Controllable fixed costs

$202,680 - 106,970 = $ 95710