Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results.      Hardware   Software Sales $ 660,000     $ 720,000   Variable costs (as a percentage of sales)   40 %     45 % Traceable fixed costs $ 250,000     $ 125,000        In addition, fixed costs common to both divisions amounted to $229,000.   Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results.

  

  Hardware   Software
Sales $ 660,000     $ 720,000  
Variable costs (as a percentage of sales)   40 %     45 %
Traceable fixed costs $ 250,000     $ 125,000  
 

  

In addition, fixed costs common to both divisions amounted to $229,000.

 

Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.)

 

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