Data for December concerning Dinnocenzo Corporation\'s two major business segmen
ID: 2345096 • Letter: D
Question
Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below:Sales revenues, Fibers
$870,000
Sales revenues, Feedstocks
$820,000
Variable expenses, Fibers
$426,000
Variable expenses, Feedstocks
$344,000
Traceable fixed expenses, Fibers
$148,000
Traceable fixed expenses, Feedstocks
S156,000
Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment and $185,000 to the Feedstocks business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.
Explanation / Answer
Total Fiber Feedstocks
Sales.......................... 1,690,000 870,000 820,000
Variable Expenses........... 770,000 426,000 324,000
Contribution Margin......... 920,000 444,000 476,000
Traceable Fixed Expense... 304,000 148,000 156,000
Segment Margin............. 616,000 296,000 320,000
Common Fixed Expenses... 314,000
Net Operating Income ...... 302,000
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