Victoria Falls Flour Mill Company started many years ago producing a single product. Ithas grown to produce many diverse consumer products ranging from foods to papergoods. Currently, the corporation is barely making a profit, and the price of its stockhas languished. Division managers have traditionally been incentivized with stockoptions and awards. However, management is evaluating a new bonus plan based onsegment profits within each division. Below are 20X4 facts about the Sugar ProductsDivision, which generates 10% of overall corporate revenue. The Sugar ProductsDivision has two key products – raw sugar and candy.Total sales of raw sugar and candyTraceable, controllable, sugar division fixed costs$45,750,00010,250,000Traceable, uncontrollable, sugar division fixed costs3,600,000Non-traceable, controllable, sugar division fixed costs1,500,000Non-traceable, uncontrollable, sugar division fixed costs1,750,000Variable selling, general, & administrative costs9,050,000Variable product costsGeneral corporate expenses for all divisions21,700,0008,000,000Prepare a contribution income statement for the aggregated Sugar Division (onecolumn). If the division manager is to be evaluated on controllable contributionmargin, would the Sugar Division manager appear to be entitled to a bonus?Name:Date:B-23.05Section:20X4 Divisional Report for Sugar ProductsContribution Income StatementSalesLess:$45,750,000
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