The Following Selected Data Relate to the Cape Breton Division

question 26

Essay

The following selected data relate to the Cape Breton Division of Eastern Enterprises Inc. (EEI): $\begin{array} { l r } \text { Sales revenue } & \$ 5,680,000 \\\text { Uncontrollable fixed costs traceable to the division } & 1,460,000 \\\text { Allocated corporate overhead } & 690,000 \\\text { Controllable fixed costs traceable to the division } & 1,220,000 \\\text { Variable costs } & 50 \% \text { of revenue }\end{array}$ Required:
A. Compute the following for the Cape Breton Division:
1. Segment contribution margin.
2. Controllable profit margin.
3. Segment profit margin.
4. Which of the three preceding measures should be used when evaluating the Cape Breton Division as an investment of EEI's resources? Why?
5. Assume that management made the decision to prepare a segmented income statement that reflected Cape Breton's five operating departments. Would all $1,220,000 of the controllable fixed costs be easily traced to the departments? Briefly explain.
6. Which of the five-dollar amounts presented in the body of the problem would be used in computing the income before taxes of Eastern Enterprises Inc.?

Recognize the importance of addressing suicidal thoughts and behaviors appropriately.

Understand the diagnostic criteria and characteristics of various anxiety disorders.

Recognize the symptoms and triggers of panic attacks and specific phobias.

Identify the differences between anxiety disorders and mood disorders, including depressive and bipolar disorders.

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Definitions:

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the actual productivity.

Per Capita

A statistical measure that divides an aggregate by the number of individuals in a population to give an average.

Industrially Advanced

Pertaining to countries or regions that have highly developed and complex industrial sectors, often characterized by innovation and high levels of production and income.

Temporary Workers

Individuals hired for a limited period, often to meet seasonal demands, project deadlines, or cover for permanent staff absences.