Jane Baldwin, Anderson Flooring’s accounting intern, has prepared the following income statement for the month of
ResidentialCommerciaotalSales revenue$1,777,000$3,127,900$4,904,900Variable expenses1,034,0002,525,0003,559,000Contribution margin743,000602,9001,345,900Fixed expenses644,300611,2001,255,500Operating income$98,700$(8,300)$90,400
In preparing the income statement, Jane was unsure what to do with $49,000 in corporate fixed expenses that cannot be traced to a particular division. Since these costs were incurred to run the business as a whole, and she believed that each division benefited equally, she just allocated half to each division.
Make a segment margin income statement that highlights each division’s contribution to corporate profits. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).)