Wabash Company has the following information pertaining to its Brick division fo
ID: 2481470 • Letter: W
Question
Wabash Company has the following information pertaining to its Brick division for this year:
Bricks
Fixed manufacturing expenses
$35,000
Fixed selling and administrative expenses
30,000
Sales
250,000
Direct manufacturing costs (variable)
40,000
Variable selling and administrative expenses
70,000
Corporate expenses allocated to the brick division are $24,000.
Calculate the brick division’s division margin.
Bricks
Fixed manufacturing expenses
$35,000
Fixed selling and administrative expenses
30,000
Sales
250,000
Direct manufacturing costs (variable)
40,000
Variable selling and administrative expenses
70,000
Explanation / Answer
the brick division’s division margin.=sales-Direct manufacturing costs (variable)-Variable selling and administrative expenses=250,000-40,000-70,000=$140,000.
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