Profitability measures

Calculating several profitability measures. provide a brief analysis based on your calculations.

Sheet

1

S

A

MPLE INC.

Profit Center Income Statement

For the Years Ended December

3

1, xxx

2

and xxx1

Division 1 Division 2 Division 3

Revenue

2,

5

00

3,000

1,

7

00

Cost of goods sold

8

00

9

00

20

0 Variable Expenses 100 35

0 80 Contribution Margin Fixed Expenses incurred in the Profit Center

100 100 100
Direct Profit Controllable Corporate Charges

35

4

0 20

Controllable Profit Other Corporate Allocations

20 20 20
Income before

Taxes

Taxes

430

6

06

250 Net income Analysis:

Sheet2

Sheet3

1
2
3
4
5
6
7
8
9
A

B

SAMPLE INC.

Profit Center Income Statement

For the Years Ended December 31, xxx2 and xxx1

Revenue
Cost of goods sold

Sheet

1

S

A

MPLE INC.

Profit Center Income Statement

For the Years Ended December

3

1, xxx

2

and xxx1

Division 1 Division 2 Division 3

Revenue

2,

5

00

3,000

1,

7

00

Cost of goods sold

8

00

9

00

20

0 Variable Expenses 100 35

0 80 Contribution Margin Fixed Expenses incurred in the Profit Center

100 100 100
Direct Profit Controllable Corporate Charges

35

4

0 20

Controllable Profit Other Corporate Allocations

20 20 20
Income before

Taxes

Taxes

430

6

06

250 Net income Analysis:

Sheet2

Sheet3

1
2
3
4
5
6
7
8
9
A

B

SAMPLE INC.

Profit Center Income Statement

For the Years Ended December 31, xxx2 and xxx1

Revenue
Cost of goods sold