Hal-Marts, Inc., has two sales departments: equipment and clothing. During Febru
ID: 2387168 • Letter: H
Question
Hal-Marts, Inc., has two sales departments: equipment and clothing. During February, these two departments reported the following operating results:Equipment Clothing
Sales $490,000 $250,000
Contribution Margin 35% 50%
Traceable Fixed Costs $29,200 $26,800
In addition, fixed costs common to both departments amounted to $54,400.
Complete the following responsibility income statement for Hal-Marts, Inc. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company’s income from operations.
HAL-MARTS, INC
Income Statement by Product Lines
For the Month Ended February 28, 20__
Segments
HAL-Marts, Inc. Equipment Clothing
Dollars % Dollars % Dollars %
Sales $490,000 $250,000
Explanation / Answer
Equipment
clothing
Hal mart in
sales
490,000
250000
Variable expenses
65%
318500
50%
250000
59.93%
Contribution margin
35%
171500
50%
125000
40.07%
Traceable costs
29200
26800
Common costs
Toatl fixed cost
Operation income
29.04%
142300
39.28%
98,200
25.14%
Equipment
clothing
Hal mart in
sales
490,000
250000
Variable expenses
65%
318500
50%
250000
59.93%
Contribution margin
35%
171500
50%
125000
40.07%
Traceable costs
29200
26800
Common costs
Toatl fixed cost
Operation income
29.04%
142300
39.28%
98,200
25.14%
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