3. You will need to compute traceable variable costs for each segment and office
ID: 2407867 • Letter: 3
Question
3. You will need to compute traceable variable costs for each segment and office margin for each segment. Remember that common expenses and operating income is not given by segment.
1-800-FLOWERS.COM, Inc.
Office Margin Statement
for the year ended July 2, 2017
Consumer
Bloom Net
Gourmet
Floral
Wire Service
Food & Gifts
Total
Net Revenues
$437,132
$ 87,700
$ 670,677
$ 1,195,509
Traceable variable costs
1,033,954
Office contribution margin
51,860
32,383
77,312
161,555
Traceable fixed costs
27,000
14,000
40,820
81,820
Office margin
79,735
Common expenses
33,376
Operating income
$ 46,359
1-800-FLOWERS.COM, Inc.
Office Margin Statement
for the year ended July 2, 2017
Consumer
Bloom Net
Gourmet
Floral
Wire Service
Food & Gifts
Total
Net Revenues
$437,132
$ 87,700
$ 670,677
$ 1,195,509
Traceable variable costs
1,033,954
Office contribution margin
51,860
32,383
77,312
161,555
Traceable fixed costs
27,000
14,000
40,820
81,820
Office margin
79,735
Common expenses
33,376
Operating income
$ 46,359
Business Segments mpany operates in the following three business segments : Consumer Floral The Co Gourmet Food and Gift Baskets, and BloomNet Wire Service. The Consumer Floral segment includes the operations of the Company's flagship brand, 1-800-Flowers.com FruitBouquets.com and Flowerama, while the Gourmet Food and Gift Baskets segment includes the operations of Harry & David (which includes Wolfeman's®, Moose Munch and Stockyards.com), Cheryl's (which includes Mrs. Beasley's), The Popcorn Factory DesignPac and 1-800-Baskets. The BloomNet Wire Service segment includes the operations of BloomNet and Napco On May 30, 2017 the Company sold its Fannie May subsidiary which was previously included within the Gourmet Food and Gift Baskets segment. The Company's Products and Service Offerings The Company offers a wide range of products including fresh-cut flowers, floral and fruit arrangements and plants, gifts, popcom, gourmet foods and gift baskets, cookies chocolates, candy, wine, and gift-quality fruit. In order to maximize sales opportunities products are not exclusive to certain brands, and may be sold across business categories The Company's differentiated and value-added product offerings create the opportunity to have a relationship with customers who purchase items not only for gift-giving occasions but also for everyday consumption. The Company's merchandising team works closely with manufacturers and suppliers to select and design its fioral, gourmet foods and gift baskets, as well as other gift-related products that accommodate our customers needs to celebrate a special occasion or convey a sentiment. As part of this continuing effort, the Company intends to continue to develop differentiated products and signature collections that customers have embraced and come to expect, while eliminating marginal performers from its product offerings During fiscal 2017, 2016 and 2015 approximately 1%, 1% and 2% respectively, of consolidated net revenue came from international sources Flowers and Plants. The Company offers fresh-cut flowers and floral and fruit arrangements for all occasions and holidays, available for same-day delivery. The Company provides its customers with a choice of florist designed products, including traditional floral and gift offerings and the Company's line of fruit arrangements under the Fruit Bouquets® brand (www.fruitbouquets.com), and flowers delivered fresh from the farm. The Company also offers a wide variety of popular plants to brighten the home and/or office, and accent gardens and landscapes Gourmet Foods and Gift Baskets. The Company manufactures premium cookies and baked gift items under the Cheryl's and Mrs. Beasley's brands, which are delivered in beautiful and innovative gift baskets and containers, providing customers with a variety of assortments to choose from. The Popcorn Factory brand pops premium popcorn and specialty snack products. The 1-800-BASKETS.COM® brand features a collection ofExplanation / Answer
1-800-FLOWERS.COM, Inc. Office Margin Statement for the year ended July 2, 2017 Consumer Bloom Net Gourmet Floral Wire Service Food & Gifts Total Net revenues 437132 87700 670677 1195509 Traceable variable costs 385272 55317 593365 1033954 Office contribution margin 51860 32383 77312 161555 Traceable fixed costs 27000 14000 40820 81820 Office margin 24860 18383 36492 79735 Common expenses 33376 Operating income 46359
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.