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:

Common fixed expenses totaled $231,000 and were allocated as follows: $89,000 to the Apparel business segment and $142,000 to the Accessories business segment.

Required:

Prepare a segmented income statement in the contribution format for the company.

Sales revenues, Apparel $ 699,000 Variable expenses, Apparel $ 367,000 Traceable fixed expenses, Apparel $ 179,000 Sales revenues, Accessories $ 795,000 Variable expenses, Accessories $ 483,000 Traceable fixed expenses, Accessories $ 145,000

Explanation / Answer

Total Apparel Accessories Sales revenues 1494000 699000 795000 Variable expenses 850000 367000 483000 Contribution Margin 644000 332000 312000 Traceable Fixed expenses 324000 179000 145000 SegmenT Margin 320000 153000 167000 Common Fxed expenses 231000 Net Operating income 89000

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