1.

Barmore Company has the following information pertaining to its two divisions for 2020:

  Division A Division B

Variable selling & administrative expenses P 35,000 P 45,000

Direct fixed manufacturing expenses    17,500    50,000

Sales  100,000  200,000

Direct fixed selling/admin. Expenses    15,000    35,000

Variable manufacturing expenses    20,000    50,000

The Common expenses are P12,000 for 2020.

 What is the segment margin for Division B?

Answer: 20,000

2. Barmore Company has the following information pertaining to its two divisions for 2020:

  Division A Division B

Variable selling & administrative expenses P 35,000 P 45,000

Direct fixed manufacturing expenses    17,500    50,000

Sales  100,000  200,000

Direct fixed selling/admin. Expenses    15,000    35,000

Variable manufacturing expenses    20,000    50,000

The Common expenses are P12,000 for 2020.

What is the net income for the Barmore Company? 

Answer: 20,500