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remmylp remmylp
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A month ago
Nobles Corporation provided the following income statement for two of its divisions: East and West.

​​EastWestTotal
Revenue$510,000$480,000$990,000
Variable expenses​​​
  Product370,000 260,000630,000
  Selling and administrative  80,000   88,000168,000
Contribution margin60,000 132,000192,000
Less fixed costs  100,000  100,000200,000
Operating income($ 40,000)$  32,000($   8,000)

Required:

The home office allocated common fixed costs of $80,000 to East and $60,000 to West. Prepare a segment margin income statement. Omit the heading.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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desai.sumeet1desai.sumeet1
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A month ago
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More solutions for this book are available here
East: $100,000 − $80,000 = $20,000
West: $100,000 − $60,000 = $40,000

​​EastWestTotal
Revenue$510,000$480,000$990,000
Variable expenses​​​
  Product370,000 260,000630,000
  Selling and administrative   80,000    88,000 168,000
Contribution margin60,000 132,000192,000
Less traceable fixed costs   20,000    40,000   60,000
Segment margin$  40,000$  92,000132,000
Common fixed costs​​ 140,000
Net operating income​​($   8,000)
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