Menu
support@graduatecourseshelp.com
+1(805) 568 7317

a target fixed corporate costs 000 18 000 target variable cost as a percentage of re 691253

a.

Target fixed corporate costs ($000)

$18,000

Target variable cost as a percentage of revenue

 

(2.5% x $600,000)

15,000

Target total corporate cost

$33,000

Target Latin America division revenues as a percentage of

 

total corporate revenues (= $75 million ÷ $600 million)

x 12.5%

Target allocation of corporate cost to Latin America division

$ 4,125

b.

 

Old Method

Actual revenue as percentage

 

 

of total ($000)

($80 ÷ $800)

10.0%

Corporate cost

 

$35,000

Allocation to Latin America division

 

 

(10% x $35,000)

 

$ 3,500

 

 

Dual Rate

 

Target revenue as a percentage of total

($75 ÷ $600)

12.5%

Target fixed corporate cost ($000)

$18,000

 

Allocated fixed costs

12.5% x $18,000

$2,250

Actual division revenue

$80,000

 

Allocated variable cost

2.5% x $80,000

2,000

Total

 

$4,250

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now