Pratt Corporation has two major business segments-Apparel and Accessories. Data
ID: 2448014 • Letter: P
Question
Pratt Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for October appear below:
Sales revenues, Apparel $751,000
Variable expenses, Apparel $388,000
Traceable fixed expenses, Apparel $140,000
Sales revenues, Accessories $828,000
Variable expenses, Accessories $449,000
Traceable fixed expenses, Accessories $117,000
Common fixed expenses totaled $322,000 and were allocated as follows: $137,000 to the Apparel business segment and $185,000 to the Accessories business segment.
Prepare a segmented income statement in the contribution format for the company.
Pratt Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for October appear below:
Sales revenues, Apparel $751,000
Variable expenses, Apparel $388,000
Traceable fixed expenses, Apparel $140,000
Sales revenues, Accessories $828,000
Variable expenses, Accessories $449,000
Traceable fixed expenses, Accessories $117,000
Common fixed expenses totaled $322,000 and were allocated as follows: $137,000 to the Apparel business segment and $185,000 to the Accessories business segment.
Prepare a segmented income statement in the contribution format for the company.
Explanation / Answer
Particulars Total Apparel business Accessories business Sales revenue 1579000 751000 828000 - variable costs 837000 388000 449000 = contribution 363000 379000 - Fixed costs tracebale 257000 140000 117000 -fixed costs common 322000 137000 185000 Net income 164000 86000 77000
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