Seabuck Corporation has two major business segments—Apparel and Accessories. Dat

Question

Seabuck Corporation has two major business segments—Apparel and Accessories. Data concerning those segments for June appear below.

Sales revenues, Apparel

$800,000

Variable expenses, Apparel

$406,000

Traceable fixed expenses, Apparel

$98,000

Sales revenues, Accessories

$820,000

Variable expenses, Accessories

$312,000

Traceable fixed expenses, Accessories

$107,000

Common fixed expenses totaled $325,000 and were allocated as follows: $150,000 to the Apparel business segment and $175,000 to the Accessories business segment.

Required:

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

Sales revenues, Apparel

$800,000

Variable expenses, Apparel

$406,000

Traceable fixed expenses, Apparel

$98,000

Sales revenues, Accessories

$820,000

Variable expenses, Accessories

$312,000

Traceable fixed expenses, Accessories

$107,000

Explanation / Answer

Particualrs Apparel Accessories Total Sales Revenue 800000 820000 1620000 Less: Variable Expenses 406000 312000 718000 Contribution 394000 508000 902000 Less: Traceable fixed Expenses 98000 107000 205000 Segment Profit 296000 401000 697000 Less : Common Fixed Cost 325000 Net Profit to Company 372000

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