Forever Memories Company Has Two Divisions and the Following Information

question 66

Essay

Forever Memories Company has two divisions and the following information available:
a.Net sales were $150,000.$90,000 was attributed to the Cherry Division.
b.Variable costs were $80,000.40% was attributed to the Grape Division.
c.Total separable fixed costs controllable by division managers were $32,000,of which $20,000 applied to the Cherry Division.
d.Total separable fixed costs,not controllable by division managers were $14,000 in the Cherry Division and $4,000 in the Grape Division.
e.Unallocated costs were $7,000.
Required:
Prepare a contribution approach income statement for the company as a whole and each division.

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Definitions:

Medical Asepsis

Practices aimed at reducing the number and transfer of pathogens, as well as preventing infection, primarily through cleanliness and sterilization techniques.

Hand Washing

The act of cleaning hands with water and soap or hand sanitizer to remove germs, dirt, and other harmful substances.

Glutaraldehyde

A powerful disinfectant used for sterilization of medical and dental equipment.

Chlorine Dioxide

A chemical compound used as a disinfectant, bleaching agent, and in water treatment.