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

Question

Camren Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for December appear below:

Common fixed expenses totaled $385,000 and were allocated as follows: $172,200 to the Apparel business segment and $212,800 to the Accessories business segment.

Prepare a segmented income statement in the contribution format for the company. (Input all amounts as positive values.)

  Sales revenues, Apparel $ 820,000   Variable expenses, Apparel $ 320,000   Traceable fixed expenses, Apparel $ 112,500   Sales revenues, Accessories $ 910,000   Variable expenses, Accessories $ 455,500   Traceable fixed expenses, Accessories $ 107,000

Explanation / Answer

Solution:

Total Apparel Accessories Sales 1,730,000 820,000 910,000 Cost of Goods Sold Variable Expenses 775,500 320,000 455,500 Contribution Margin 954,500 500,000 454,500 Traceable Fixed Cost 219,500 112,500 107,000 Segment margin 735,000 387,500 347,500 Common Fixed Cost 385,000 172,200 212,800 Net Operating Expenses 350,000

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