Spiess Corporation has two major business segments-Apparel and Accessories. Data

Question

Spiess Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for December appear below $693,000 $324,000 $193,000 $776,000 $429,000 127,000 Sales revenues, Apparel Variable expenses, Apparel Apparel Sales revenues, Accessories Variable expenses, Accessories Traceable fixed expenses, Accessories Common fixed expenses totaled $342,000 and were allocated as follows: $146,000 to the Apparel business segment and $196,000 to the Accessories business segment. Required Prepare a segmented income statement in the contribution format for the company. Total Apparel Accessories Net operating income (loss)

Explanation / Answer

Segmented income statement :

Total Company Apparel Accessories Sales Revenue 1469000 693000 776000 Variable cost -753000 -324000 -429000 Contribution margin 716000 369000 347000 Traceable fixed expense -320000 -193000 -127000 Segment margin 396000 176000 220000 Common fixed expense -342000 Net operating income 54000

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