Refer to the data in the previous question. Assume Annies Homemade Ice Cream further divides its total Mobile Sales segment into three additional segments. The Corporate Subscriptions segment, which accounts for of mobile sales and has a variable expense ratio of refers to companies that purchase ice cream for their employees one day a month, every month of the year. The Food Truck segment, which accounts for of mobile sales and has a variable expense ratio of includes selling ice cream at festivals, private venues, and local microbreweries. The Catered Events segment, which accounts for of mobile sales and has a variable expense ratio of includes prepurchased ice cream deliveries for weddings, birthday parties, graduation parties, etc. All of the mobile sales fixed expenses are common fixed expenses that could only be avoided by discontinuing all mobile sales. Prepare a contribution format segmented income statement that divides Annie's Homemade's mobile sales into three
segments: Corporate Subscriptions, Food Truck, and Catered Events.
Required:
Prepare a contribution format segmented income statement that divides Annies Homemades mobile sales into three segments: Corporate Subscriptions, Food Truck, and Catered Events.
If the Food Truck segments unit sales grow by and all else holds constant, then what would be the impact on profits rounded to the nearest dollar
If the total mobile sales hold constant, but sales of Corporate Subscriptions decrease by $ and sales at Catered Events increase by $ then what would be the impact on profits?