The Winter Products Division of American Sports Corporation produces and markets

Question

The Winter Products Division of American Sports Corporation produces and markets two products for use in the snow: Sleds and Saucers. The following data were gathered on activities last month:

Prepare a segmented income statement in the contribution format for last month. (Input all amounts as positive values. Omit the "$" sign in your response.)

Sleds Saucers   Sales in units 2,000     9,200       Selling price per unit $ 50.30     $ 21.90       Variable production costs per unit $ 18.70     $ 4.80       Traceable fixed production costs $ 11,100     $ 32,500       Variable selling expenses per unit $ 1.60     $ 0.90       Traceable fixed selling expenses $ 1,600     $ 2,900       Allocated division administrative expenses $ 38,200     $ 71,600    

Explanation / Answer

Total Company Sleds Saucers Sales $ 302,080.00 $ 100,600.00 $ 201,480.00 Variable Cost $    93,040.00 $    40,600.00 $    52,440.00 Contribution Income $ 209,040.00 $    60,000.00 $ 149,040.00 Traceable Fixed Cost $    48,100.00 $    12,700.00 $    35,400.00 Segment Income $ 160,940.00 $    47,300.00 $ 113,640.00 Administrative Expenses $ 109,800.00 Net Income $    51,140.00

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