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Rosales Enterprises Has a Forklift Division That Operates as a Profit

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Essay

Rosales Enterprises has a forklift division that operates as a profit center.Below is a partially completed responsibility report for the first quarter.Complete the responsibility report.(Round percentages to one decimal place.)
Rosales EnterprisesResponsibility Report\textbf{Rosales Enterprises}\\\textbf{Responsibility Report}

 Flexible Budget  Product  Actual  Flexible  Variance  Percentage  Type  Results  Budget  (F or U)  Variance  Sales Revenue $688,200$700,000Variable Expense 309,000320,000 Contribution Margin Traceable Fixed Expense 371,000369,000 Divisional Segment Margin \begin{array}{lrr}&&&\textbf { Flexible Budget }\\\textbf { Product } & \textbf { Actual } & \textbf { Flexible } & \textbf { Variance } & \textbf { Percentage } \\\textbf { Type } & \textbf { Results } & \textbf { Budget } & \textbf { (F or U) } & \textbf { Variance }\\\text { Sales Revenue } & \$ 688,200 & \$ 700,000 \\\underline{\text{Variable Expense }} & \underline{309,000} & \underline{320,000} \\\text { Contribution Margin } \\\underline{\text{Traceable Fixed Expense }} & \underline{371,000} & \underline{369,000} \\\text { Divisional Segment Margin }\end{array}


Definitions:

Breach of Contract

A violation of the terms or conditions as stated in a contract, which may result in legal action or penalties against the party at fault.

Fair Market Value

The price at which property would sell for on the open market between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.

Valid Consideration

An essential element in the formation of a contract, referring to something of value (such as goods, services, or money) exchanged by the parties that induces them to enter into the agreement.

Illusory Consideration

An apparent promise or agreement that lacks a real commitment and therefore does not form a binding contract.

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