Question

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

Sales revenues, Apparel	$	717,000
Variable expenses, Apparel	$	397,000
Traceable fixed expenses, Apparel	$	125,000
Sales revenues, Accessories	$	771,000
Variable expenses, Accessories	$	510,000
Traceable fixed expenses, Accessories	$	176,000

Common fixed expenses totaled $181,000 and were allocated as follows: $74,000 to the Apparel business segment and $107,000 to the Accessories business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Answer 1

Camren Corporation
Segmented Income Statement
	($)	($)	($)
	Total	Apparel	Accessories
Sales	14,88,000	7,17,000	7,71,000
Variable Expense	9,07,000	3,97,000	5,10,000
Contribution Margin	5,81,000	3,20,000	2,61,000
Traceable Fixed Expense	3,01,000	1,25,000	1,76,000
Segment Margin	2,80,000	1,95,000	85,000
Common Fixed Expense	1,81,000
Net Operating Income	99,000