Unamwured Question 13 Subject Outline Arnouncements Not yet ma pts sodules Kristina Food Plyuld operates...
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Unamwured Question 13 Subject Outline Arnouncements Not yet ma pts sodules Kristina Food Plyuld operates a food business with two diving thereinandering Tervice signments ading List A segmented profit and low statement for the company's most recent year follow Total company Restaurant Catering cussions azes Sales Less: Variable expenses Contribution margin Less Treeable fixed costs Division segment margin Les common red costs Net profit $500,000 $275,000 $225,000 $145,000 $80,000 $130,000 -$50,000 $375,000 $187.500 $187.500 $45,000 $142,500 Sedia $125.000 587,500 537.500 $100,000 $62,500 Gallery Required: a) if the restaurant division increased its sales by $65.000, calculate the division segment margin for the Restaurant division, and net profit for the total company. Assume that all fixed costs and cost behaviour patterns remained constant. (1 mark) b) Calculate the contribution margin ratio and division segment margin ratio for the Restaurant division before and after the change in Sales Explain the changes. (2 marks) c) Based upon the segment information above what could Kristina do to return her business to profitability? (1 mark) Note: Show all working out and clearly distinguish between your responses to parta) b) and a
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