Parson, Inc

question 64

Essay

Parson, Inc. operates a chain of 80 retail stores throughout the Southeast that specializes in the sale of sports equipment. The following costs relate to store no. 19 in Atlanta, Georgia:
1. Salary of store manager: $58,000
2. Allocated corporate overhead: $55,000
3. Cost of goods sold: $2,560,000
4. Landscaping and grounds costs (yearly contract): $6,800
5. Hourly wages of sales clerks: $343,000
6. Local advertising (negotiated by store manager): $76,000
7. Property taxes: $25,800
8. Sales commissions: $221,000
Required:
A. Store no. 19's segment contribution margin?
B. Store no. 19's controllable profit margin?
C. Store no. 19's segment profit margin?
D. The net income of Parson, Inc.?

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Definitions:

Crop Destroyed

A situation where agricultural produce is damaged or obliterated due to factors like natural disasters, pests, or disease.

Excess Supply

A condition in the market where the quantity of a good or service supplied is greater than the quantity demanded at the current price.

Price Of Burritos

The amount of money required to purchase one unit of a burrito, determined by factors such as ingredients, preparation costs, and market demand.

Demand Shifts

Changes in consumer desire that lead to an increase or decrease in the quantity demanded at every price point.