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Data for December concerning Dinnocenzo Corporation\'s two major business segmen

ID: 2345096 • Letter: D

Question

Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below:

Sales revenues, Fibers


$870,000

Sales revenues, Feedstocks


$820,000

Variable expenses, Fibers


$426,000

Variable expenses, Feedstocks


$344,000

Traceable fixed expenses, Fibers


$148,000

Traceable fixed expenses, Feedstocks


S156,000

Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment and $185,000 to the Feedstocks business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Explanation / Answer

Total Fiber Feedstocks

Sales.......................... 1,690,000 870,000 820,000

Variable Expenses........... 770,000 426,000 324,000

Contribution Margin......... 920,000 444,000 476,000   

Traceable Fixed Expense... 304,000 148,000 156,000

Segment Margin............. 616,000 296,000 320,000

Common Fixed Expenses... 314,000

Net Operating Income ...... 302,000