3. Responsibility income statement-preparatiorn Gameland Village is segmented in

Question

3. Responsibility income statement-preparatiorn Gameland Village is segmented into two sales departments: software and video games. During April, these two departments reported the following operating results SoftwareVideo Games 200,000 56% $16,000 $400,000 65% $20,000 Variable costs (as a percentage of sales In addition, fixed costs common to both departments amounted to S42,000 Complete the following segmented income statement for Gameland Village. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company's income from operations GAMELAND VILLAGE Income Statement by Product Lines For the Month Ended April 30, 20 Segments ameland Village Dollars Software Video Gam es 00 | Dollars Sales Variable Costs % | Dollars 100 $200,000 65 100 56 $400,000

Explanation / Answer

Prepare Segmented income statement :

Segments Gameland village Software Video games Dollars % Dollars % Dollars % Sales 600000 100% 400000 100% 200000 100% Variable cost 372000 62% 260000 65% 112000 56% Contribution margin 228000 38% 140000 35% 88000 44% Traceable fixed cost 36000 6% 20000 5% 16000 8% Segment margin 192000 32% 120000 30% 72000 36% Common fixed expenses 42000 Net operating income 150000

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