Data for Patrick Corporation\'s two major business segments-Fibers and Feedstock

Question

Data for Patrick Corporation's two major business segments-Fibers and Feedstocks for the month of March-appear below

Sales revenues, Fibers

$560,000

Sales revenues, Feedstocks

$810,000

Variable expenses, Fibers

$235,000

Variable expenses, Feedstocks

$348,000

Traceable fixed expenses, Fibers

$90,000

Traceable fixed expenses, Feedstocks

$113,000

Common fixed expenses totaled $461,000 and were allocated as follows: $249,000 to the Fibers business segment and $212,000 to the Feedstocks business segment.

Required:

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

Sales revenues, Fibers

$560,000

Sales revenues, Feedstocks

$810,000

Variable expenses, Fibers

$235,000

Variable expenses, Feedstocks

$348,000

Traceable fixed expenses, Fibers

$90,000

Traceable fixed expenses, Feedstocks

$113,000

Explanation / Answer

Income Statement Fibres Sales 560000 Variable Cost -235000 Contribution 325000 Fixed Cost Traceable 90000 Common 249000 339000 Net Profit -14000 Feedstocks Sales 810000 Variable Cost -348000 Contribution 462000 Fixed Cost Traceable 113000 Common 212000 325000 Net Profit 137000

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