Data for December concerning corporation\'s two major business segments-Fibers a

Question

Data for December concerning 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 $156,000


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

                                                               Fibers                         Feedstocks
Sales Revenues                                       $870,000                        $820,000
Variable expenses                                   $426,000                        $344,000 Contribution                                           $444,000                        $476,000
Traceable fixed expenses                        $148,000                        $156,000
Gross Income                                        $296,000                        $320,000
Common fixed expenses                          $129,000                        $185,000      Net Income                                        $167,000                         $135,000

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