Business assignment 2 acc 122

Business Assignment 2

ACC 122 Name__________________________________

In this assignment we will be completing an Office Margin Statement similar to Exhibit

11-11 on page 392. I used the information from the segment reporting footnote for 1-

800-FLOWERS.COM, Inc. I have included the source of the information, but I needed

to adjust some of the numbers to make it less complex.

First, read the footnote information in the file, “Information for Business Assignment

2.122”. Complete #1 and 2 below.

1. 1-800-FLOWERS.COM, Inc. divides its business into three segments. For each

segment indicate 2 products or services that are provided by that segment (6


A. Consumer Floral



B. Bloom Net Wire Service



C. Gourmet Food & Gifts



2. 1-800-FLOWERS.COM, Inc. bases the performance of its segments based upon

what for each segment? (2 points)

Now move to the schedule below. It is similar to Exhibit 11-11 in our text.

3. You will need to compute traceable variable costs for each segment and office

margin for each segment. Remember that common expenses and operating income is

not given by segment, as we see in Exhibit 11-11. (12 points)

1-800-FLOWERS.COM, Inc.

Office Margin Statement

for the year ended July 2, 2017



Bloom Net Gourmet

Floral Wire Service Food & Gifts Total

Net Revenues $437,132 $




$ 1,195,509

Traceable variable costs 1,033,954

Office contribution margin 51,860




Traceable fixed costs 27,000


40,820 81,820

Office margin


Common expenses


Operating income $


Using this information from the schedule you completed in #3, compute the following

showing your computations. Add lines as needed. Each question 4 and 5 are worth

9 points each and 6 and 7 are worth 6 points each.

4. Contribution Margin ratio for each segment:

A. Consumer Floral

B. Bloom Net Wire Service

C. Gourmet Food & Gifts

5. Break-even point in sales dollars for each segment:

A. Consumer Floral

B. Bloom Net Wire Service

C. Gourmet Food & Gifts

6. Margin of safety in dollars for each segment.

A. Consumer Floral

B. Bloom Net Wire Service

C. Gourmet Food & Gifts

7. Margin of safety ratio for each segment

A. Consumer Floral

B. Bloom Net Wire Service

C. Gourmet Food & Gifts

This is the end of Business Assignment 2. Save your file and upload in the drop box


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