Pratt Corporation has two major business segments-Apparel and Accessories. Data
ID: 2569335 • Letter: P
Question
Pratt Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for October appear below: Sales revenues, Apparel Variable expenses, Apparel Traceable fixed expenses, Apparel Sales revenues, Accessories Variable expenses, Accessories Traceable fixed expenses, Accessories 775,000 S 314,000 S 201,000 S 799,000 S 425,000 S 128,000 Common fixed expenses totaled $401,000 and were allocated as follows: $172,000 to the Apparel business segment and $229,000 to the Accessories business segment. Prepare a segmented income statement in the contribution format for the company. Total CompanyApparel AccessoriesExplanation / Answer
Total
Apparel
Accessories
Sales
$ 1,574,000
$ 775,000
$ 799,000
Variable expenses
$ 739,000
$ 314,000
$ 425,000
Contribution Margin
$ 835,000
$ 461,000
$ 374,000
Traceable fixed expenses
$ 329,000
$ 201,000
$ 128,000
Segment Margin
$ 506,000
$ 260,000
$ 246,000
Common fixed expenses
$ 401,000
Net operating Income
$ 105,000
Total
Apparel
Accessories
Sales
$ 1,574,000
$ 775,000
$ 799,000
Variable expenses
$ 739,000
$ 314,000
$ 425,000
Contribution Margin
$ 835,000
$ 461,000
$ 374,000
Traceable fixed expenses
$ 329,000
$ 201,000
$ 128,000
Segment Margin
$ 506,000
$ 260,000
$ 246,000
Common fixed expenses
$ 401,000
Net operating Income
$ 105,000
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