Pampered pet is a pet bed manufacturer located in charleston, south carolina. two products are produced in its manufacturingfacility: spoiled and ruint. the following information relates to its first year of operations:
spoiled ruint
units sold 20,000 10,000
unit sales price $30 $45
variable cost percentage 40% 50%
traceable, noncontrollable fixed costs $250,000 $100,000
allocated common fixed costs 100,000 50,000
1) what should the controllable margin on which spoiled's manager should be judged be?
2) what should the segment margin on which ruint should be judged be?
3) what should pampered pet's operating income for the year be?
Answers: 2
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