Particulars Installation Plumbing Wholesale Heating & Air Total

Conditioning
Revenue 1,956,000 1260000 2467800 1245700 6929500

Material Cost 1159866 666306 966300 641628 3434100

Labour Cost 353734 219294 190700 264372 1028100

Margin 442400 374400 1310800 339700 2467300

Overhead Costs 98500 146900 457200 45600 748200

Segment Contribution 343900 227500 853600 294100 1719100

Corrected Allocated 258242 245654 136545 335159 975600

Corporate Costs
(Table -1)
Segment Margin 85658 (18154) 7171055 (41059) 743500

Corrected Unallocated 68386 172533 150010 234471 625400

Corporate Costs
(Table-2)
Segment Margin 17272 (190687) 567045 (275530) 118100
After Allocation
Business Sustaining 224600
Cost
Corporate Loss (106500)
Before taxes

A)Financial analysis of divisional performance of GMPHS

Corrected Allocated Corporate Cost

Table - 1

Particulars Cost Installation Plumbing Wholesale Heating & Air Total

Driver Conditioning

Shoptime* Machine 54029 37820 8105 86446 186400

Hours
Supplies Cost** Machine 36348 25443 5453 58156 125400
Hours
General SKUs 11165 66991 100487 78157 256800
Warehouse
Costs***
Equipment Costs Traced 156700 115400 22500 112400 407000
directly
Total Corrected 258242 335159 245654 136545 975600
Allocated
Corporate Costs

Calculations

*Shoptime:

($ 186400 x 1000/3450), ($ 186400 x 700/3450), ($ 186400 x 150/3450), ($ 186400 x 1600/3450)

54029 37820 8105 86448

**Supplies Costs:

($ 125400 x 1000/3450), ($ 125400 x 700/3450), ($ 125400 x 150/3450), ($ 125400 x 1600/3450)

36348 25443 5453 58156

***General Warehouse Costs

($ 256800 x 100/2300), ($ 256800 x 600/2300), ($ 256800 x 900/2300), ($ 256800 x 700/2300)

11165 66991 100487 78157

Corrected Unallocated Corporate Cost

Table - 2

Particulars Cost Installation Plumbing Wholesale Heating & Air Total

Driver Conditioning

Order Taking & No. Of 7522 55877 124650 56951 245000

Billing* invoices
issued
Customer No. Of 25088 48085 10454 73173 156800
Service** calls
Administration*** No. Of 35776 68571 14906 104347 223600
calls
Total corrected 68386 172533 150010 234471 625400
Unallocated
Corporate Costs

Calculations

*Order Taking & Billing:

($ 245000 x 350/11400), ($ 245000 x 2600/11400), ($ 245000 x 35800/11400), ($ 245000 x

2650/11400)

7522 55977 124650 56951

**Customer Service:

($ 156800 x 1200/7500), ($ 156800 x 2300/7500), ($ 156800 x 500/7500), ($ 156800 x 3500/7500),

25088 48085 10454 73173

***Administration

($ 223600 x 1200/7500), ($ 223600 x 2300/7500), ($ 223600 x 500/7500), ($ 223600 x 3500/7500)

35776 68571 14906 104347

Heating and Air Conditioning Division

 Particulars Commercial Industrial Residential Total

Revenue 304500 295600 645600 1245700

Material Cost* 156840 152256 332532 641628

Chargeable Labour Cost 45236 43914 95910 185060

(70%)**
Retraining & Recertification 9253 13219 3965 26437
Cost (10%)***

Travel Cost (20%)**** 15862 2644 34369 52875

Contribution 77309 83567 178824 339700

Overhead Cost**** 11400 8550 25650 45600

Segment Margin 65909 75017 153174 294100

Shoptime Cost1 21611 16209 48626 86446

Supplies Cost2 14539 10904 32713 58156

Equipment Cost3 44960 50580 16860 112400

General Warehouse Cost4 16748 11165 50244 78157

Customer service5 10453 20907 41813 73173

Administration Cost6 14907 29813 59627 104347

Order Taking & Billing7 13921 13514 29516 56951

Segment Margin for each (71230) (78075) (126225) (275530)

units

Calculations

*Material Cost:

($ 641628 x $304500/1245700), ($ 641628 x 295600/1245700), ($ 641628 x 645600/1245700)

156840 152256 332532

 **Chargeable Labour Cost:

($ 264372 x 70%)=185060, ($ 185060 x 3045/12457), ($ 185060 x 2956/12457), ($ 185060 x 6456/12457)

45236 43914 95910

***Retraining & Recertification Cost

($ 264372 x 10%)=2, ($ 26437 x 35%), ($ 26437 x 50%), ($ 26437 x 15%)

9253 13219 3965

****Travel cost

($ 264372 x 20%)=52874, ($ 52874 x 30%), ($ 52874 x 50%), ($ 52874 x 65%),

15862 2644 34369

*****Overhead Cost

($ 45600 x 400/1600), ($ 45600 x 300/1600),($ 45600 x 900/1600)

11400 8550 25650

Corrected Allocated Corporate cost

1
Shoptime Cost:

($ 86446 x 400/1600), ($ 86446 x 300/1600), ($ 86446 x 900/1600)

21611 16209 48626

2
Supplies Cost:

($ 58156 x 400/1600), ($ 58156 x 300/1600), ($ 58156 x 900/1600)

14539 10904 32713

3
Equipment Cost:
 ($ 112400 x 40%), ($ 112400 x 45%), ($ 112400 x 15%)

44960 50580 16860

4
General Warehouse Cost

($ 78157 x 150/700), ($ 78157 x 150/700), ($ 78157 x 150/700)

16748 11165 50244

Corrected unallocated corporate cost

5
Customer Service

($ 73173 x 500/3500), ($ 73173 x 1000/3500), ($ 73173 x 2000/3500)

10453 20907 41813

6
Administration

($ 104347 x 500/3500), ($ 104347 x 1000/3500), ($ 104347 x 2000/3500)

14907 29813 59627

7
Order Taking & Billing

($ 56951 x 304500/1245700)=13921,

($ 56951 x 295600/1245700)=13514, ($ 56951 x 645600/1245700)=29516