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

​​NorthSouthTotal
Revenue$50,000$40,000$90,000
Variable expenses​​​
  Product20,000 15,00035,000
  Selling and administrative  15,000   8,000 23,000
Contribution margin15,000 17,00032,000
Less fixed costs  20,000  10,000  30,000
Operating income($ 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.
Textbook 
Managerial Accounting

Managerial Accounting


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lampardlampard
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7 months ago
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More solutions for this book are available here
North: $20,000 − $18,000 = $2,000
South: $10,000 − $2,000 = $8,000

​​NorthSouthTotal
Revenue$50,000$40,000$90,000
Variable expenses​​​
  Product20,000 15,00035,000
  Selling and administrative  15,000   8,000 23,000
Contribution margin15,000 17,00032,000
Less traceable fixed costs   2,000   8,000 10,000
Segment margin$13,000$  9,00022,000
Common fixed costs​​ 20,000
Net operating income​​$ 2,000
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