Spiess Corporation has two major business segments--Apparel and Accessories. Dat

Question

Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel Variable expenses, Apparel Traceable fixed expenses, Apparel Sales revenues, Accessories Variable expenses, Accessories Traceable fixed expenses, Accessories $687,000 $300,000 $112,000 $820,000 $437,000 $140,000 Common fixed expenses totaled $478,000 and were allocated as follows: $187,000 to the Apparel business segment and $291,000 to the Accessories business segment. Requirec Prepare a segmented income statement in the contribution format for the company Total Compan Apparel Accessories Net operating income (loss) $

Explanation / Answer

Total company Apparel Accessories sales revenue 1507000 687000 820000 less:variable expense (737000) (300000) (437000) contribution margin 770000 387000 383000 less:Traceable fixed cost (252000) (112000) (140000) segment income 518000 275000 243000 less:common fixed cost (478000) Net operating income /(loss) 40000

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