Biology Forums - Study Force

Bethel Corporation provided the following income statement for two of its divisions: North and South.

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North

South

Total

Revenue	$50,000	$40,000	$90,000
Variable expenses	​	​	​
Product	20,000	15,000	35,000
Selling and administrative	15,000	8,000	23,000
Contribution margin	15,000	17,000	32,000
Less fixed costs	20,000	10,000	30,000
Operating income	($ 5,000)	$  7,000	$    2,000

Required:

The home office allocated common fixed costs of $18,000 to North and $2,000 to South. Prepare a segment margin income statement. Omit the heading.

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