Data for December concerning Ash Corporation\'s two major business segments - Fi

Question

Data for December concerning Ash Corporation's two major business segments - Fibers and Feedstocks, appear below: Sales revenues, Fibers = $950,000; Sales revenues, Feedstocks = $900,000;

Variable expenses, Fibers = $525,000; Variable expenses, Feedstocks = $424,000; Traceable fixed expenses, Fibers = $148,000; Traceable fixed expenses, Feedstocks = $156,000

Common fixed expenses totaled $292,000 and were allocated as follows: $155,000 to the Fibers business segment and $137,000 to the Feedstocks business segment.

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Explanation / Answer

INCOME STATEMENT FIBRES FEEDSTOCKS Sales 950000 900000 Less Variable Cost 525000 424000 Contribution Margin 425000 476000 Less Direct Fixed Expenses 148000 156000 Less Common Fixed Cost 155000 137000 Net Profit 122000 183000

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