Business, 03.09.2020 04:01 nefertiri64

The MEC Company has two divisions: the Computer division and the Printer division. Cost and revenue information for the two divisions for the year is as follows: Computer Printer Division DivisionRevenue $1,100,000 $750,000Fixed costs:Costs unique to each division 450,000 375,000Costs allocated by corporate headquarters 50,000 70,000Variable cost per unit 7 6Unit sales of each division’s product 75,000 52,000Prepare a segment margin income statement showing each division’s contribution and segment margins and the overall company profit. Segment Income StatementTotal Company Computer Division Printer DivisionRevenue $1,850,000 $1,100,000 $750,000Variable Costs - 837,000 - 525,000 - 312,000Contribution Margin 1,013,000 575,000 438,000Traceable Fixed Costs - 825,000 - 450,000 -375,000Division (Segment) Margin 188,000 125,000 63,000Common Fixed Costs - 120,000Net Income $ 68,000How did they get common fixed costs?

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The MEC Company has two divisions: the Computer division and the Printer division. Cost and revenue...

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