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    Neil Gumban
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    This document presents the segmented income statement for MS Company which has two product segments: Choco Pines and Choco Fudge. It provides key financial metrics like units sold, sales, variable costs, contribution margin, fixed costs, segment income, and common fixed costs to calculate break even point, margin of safety, and degree of operating leverage for each segment and company wide.

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    This document presents the segmented income statement for MS Company which has two product segments: Choco Pines and Choco Fudge. It provides key financial metrics like units sold, sales, variable costs, contribution margin, fixed costs, segment income, and common fixed costs to calculate break even point, margin of safety, and degree of operating leverage for each segment and company wide.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    25 views1 page

    Sample Handouts

    Uploaded by

    Neil Gumban
    This document presents the segmented income statement for MS Company which has two product segments: Choco Pines and Choco Fudge. It provides key financial metrics like units sold, sales, variable costs, contribution margin, fixed costs, segment income, and common fixed costs to calculate break even point, margin of safety, and degree of operating leverage for each segment and company wide.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    MS Company

    Segmented Income Statement


    Given:
    Choco Pines Choco Fudge Company wide
    # of units 9,000.00 6,000.00 15,000.00

    Sales $ 72,000 $ 60,000 $ 132,000


    Variable Cost (27,000) (15,000) (42,000)
    Contribution Margin 45,000 45,000 90,000
    Direct Fixed Cost (24,000) (30,000) (54,000)
    Segment Income $ 21,000 $ 15,000 36,000
    Common Fixed Cost (6,000)
    Operating Income $ 30,000

    Selling Price $8 $ 10
    CM/Unit $5 $ 7.5

    Required:
    1. Break even point in units and sales
    a. Choco Pines
    b. Choco Fudge
    c. Company wide
    2. Margin of safety in units and sales
    a. Choco Pines
    b. Choco Fudge
    c. Company wide
    3. Degree of Operating Leverage
    a. Choco Pines
    b. Choco Fudge
    c. Company wide

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