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 2,200     9,400       Selling price per unit $ 50.60     $ 22.00       Variable production costs per unit $ 19.50     $ 3.80       Traceable fixed production costs $ 11,700     $ 31,600       Variable selling expenses per unit $ 1.50     $ 0.50       Traceable fixed selling expenses $ 1,300     $ 2,400       Allocated division administrative expenses $ 39,700     $ 70,600    

Explanation / Answer

Segments Total Company Sleds Saucers Sale $               318,120.00 $ 111,320.00 $ 206,800.00 Variable Cost $                 86,620.00 $    46,200.00 $    40,420.00 Contribution Margin $               231,500.00 $    65,120.00 $ 166,380.00 Traceable Fixed Cost $                 47,000.00 $    13,000.00 $    34,000.00 Segment Margin $               184,500.00 $    52,120.00 $ 132,380.00 Common Fixed Cost $               110,300.00 Net Income $                 74,200.00

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