Gameland Village is segmented into two sales departments: software and video gam
ID: 2350928 • Letter: G
Question
Gameland Village is segmented into two sales departments: software and video games. During April, these two departments reported the following operating results:Software Video Games
Sales $400,000 $200,000
Variable costs (% of sales) 65% 56%
Tracebable fixed costs $20,000 $16,000
In addition, fixed costs common to both departments amounted to $42,000.
Complete the following segmented income statement for Gameland Village. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company
Explanation / Answer
Gameland Village Software Video Games Dollar $ % Dollars % Dollars % Sales $600,000 100 $400,000 100 $200,000 100 Var Costs $372,000 62 260,000 65 $112,000 56 ------------------------------------------------------------- COnt Margin$228,000 38% 140,000 35% 88,000 44% Trac FC $36,000 20,000 16,000 Common FC $42,000 ---------------------------------------- Income from Ops $150,000
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