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Hatch Company Has Two Divisions: O and E

question 182

Essay

Hatch Company has two divisions: O and E. During the year just ended, Division O had a segment margin of $9,000 and variable costs equal to 70% of sales. Traceable fixed costs for Division E were $19,000. Hatch Company as a whole had a contribution margin of 40%, a segment margin of $25,000, Common costs of $10,000 and sales of $200,000. Given this data, prepare segmented income statements showing the Total as well as amounts for Division 0 and E.



Definitions:

Statistics

The science of collecting, analyzing, interpreting, and presenting data.

Data

The facts and figures collected, analyzed, and summarized for presentation and interpretation.

Nominal Scale

A measurement scale used for categorization without a natural order or rank.

Numeric

Relating to, measurable in, or expressed as numbers or numerical data.

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