Data for December concerning Ash Corporation\'s two major business segments-Fibe

Question

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

Sales revenues, Fibers

$950,000

Sales revenues, Feedstocks

$900,000

Variable expenses, Fibers

$525,000

Variable expenses, Feedstocks

$424,000

Traceable fixed expenses, Fibers

$148,000

Traceable fixed expenses, Feedstocks

$156,000

Common fixed expenses totaled $292,000 and were allocated as follows: $155,000 to the Fibers business segment and $137,000 to the Feedstocks business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. (Points : 15)

Sales revenues, Fibers

$950,000

Sales revenues, Feedstocks

$900,000

Variable expenses, Fibers

$525,000

Variable expenses, Feedstocks

$424,000

Traceable fixed expenses, Fibers

$148,000

Traceable fixed expenses, Feedstocks

$156,000

Explanation / Answer

ASH CORPORATION December Data Segmented Income statement in the Contribution Format Particulars Fibers Feedstocks In $ In $ (A) Sales                9,50,000               9,00,000 (B) (-) Variable Expenses                5,25,000               4,24,000 ( C ) Contribution Margin (A-B)                4,25,000               4,76,000 (-) Fixed Expenses Traceable Fixed expenses                1,48,000               1,56,000 Allocated Common Fixed Expenses                1,55,000               1,37,000 (D) Total Fixed Expenses                3,03,000               2,93,000 Net Profit (C - D)           1,22,000          1,83,000

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