ACC501 MODULE 4 CASE

ACC501 MODULE 4 CASE

Total

New York

Chicago

Paris

Little Rock

Billings (Revenue)

50,000 22,000 10,000 16,000 2,000

Traceable Consulting Costs

33,500 14,000 6,000 12,500 1,000

Non-Traceable Consulting Costs

10,000 4,400 2,000 3,200 400

Gross Profit on Sales

6,500 3,600 2,000 300 600

Traceable Other Costs

1,000 300 200 500 -

Non-Traceable Other Costs

2,500 1,100 500 800 100

Net Income

3,000 2,200 1,300 (1,000)

500

In this scenario the Non-traceable costs are allocated to each unit equally, and due to this you can see that the Paris unit is showing the Loss of 1,000 in total net income and the New York unit ...