Sporting Goods sells athletic apparel, sports equipment, and shoes. The most recent annual segment margin income statement showed the following:
| Apparel | Equipment | Shoes | |
| Sales Revenue | 575,000 | 160,000 | 745,000 |
| Variable Expenses | 245,000 | 125,000 | 323,000 |
| Contribution Margin | 330,000 | 30,000 | 422,000 |
| Fixed Costs | 75,000 | 50,000 | 95,000 |
| Segment Income | 255,000 | -20,000 | 327,000 |
What is the annual operating income of the company?
| Apparel | Equipment | Shoes | Total | |
| Sales Revenue | 575,000 | 160,000 | 745,000 | 1,480,000 |
| Variable Expenses | 245,000 | 125,000 | 323,000 | 693,000 |
| Contribution Margin | 330,000 | 35,000 | 422,000 | 787,000 |
| Fixed Costs | 75,000 | 50,000 | 95,000 | 220,000 |
| Segment Income | 255,000 | -15,000 | 327,000 | 567,000 |
Annual operating income of the company: $567,000
Operating Income:
Total Sales Revenue - Total Variable Expenses - Total Fixed Costs - Total Operating Expenses
.
Since Operating Expenses are not given, the rest of the expenses are deducted to calculate the Annual operating Income.
.
.
......
Feel free to ask any doubt.
Get Answers For Free
Most questions answered within 1 hours.