Danner Co Has Three Divisions Which Are Operated as Profit Centers

question 179

Essay

Danner Co. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. $\begin{array}{lccc}\text { Operating Data }&\text { Women's Shoes }&\text { Men's Shoes }&\text { Children's Shoes }\\\hline\text { Contribution margin } & \$ 280,000 & (3) & \$ 220,000 \\\text { Controllable fixed costs } & 130,000 & (4) & (5) \\\text { Controllable margin } & (1) & \$ 90,000 & 96,000 \\\text { Sales } & 800,000 & 480,000 & (6) \\\text { Variable costs } & (2) & 330,000 & 250,000\end{array}$ Instructions
(a) Compute the missing amounts. Show computations.
(b) Prepare a responsibility report for the Women's Shoe Division assuming (1) the data are for the month ended June 30 2016 and (2) all data equal budget except variable costs which are $20000 over budget.

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Definitions:

Life's Challenges

Difficulties or obstacles that are encountered during the course of one's life, requiring personal adaptation or resolution.

Adler

Alfred Adler was an Austrian medical doctor and psychotherapist, founder of Individual Psychology, which emphasizes the importance of feelings of inferiority and the creative self in shaping personality.

Behaviourist Theory

A psychological approach focusing on observable behaviours and external stimuli, while discounting internal states like thoughts and emotions.

Reinforcement

In behavioral psychology, it refers to a stimulus or event that increases the likelihood of the recurrence of a particular behavior.