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

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 $ 730,000 $ 316,000 $ 185,000 $ 837,000 $ 436,000 $ 122,000 Common fixed expenses totaled $431,000 and were allocated as follows: $212,000 to the Apparel business segment and $219,000 to the Accessories business segment. Required Prepare a segmented income statement in the contribution format for the company. Total CompanyApparel Accessories 0 0 0 0 $ 0 0

Explanation / Answer

Total company Apparel Accessories Sales $1,567,000 $730,000 $837,000 Variable Expense $752,000 $316,000 $436,000 Contribution Margin $815,000 $414,000 $401,000 Traceable Fixed expense $307,000 $185,000 $122,000 Segment Margin $508,000 $229,000 $279,000 Common Fixed expense $431,000 Net operating income $77,000

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