Pratt Corporation has two major business segments-Apparel and Accessories. Data

Question

Pratt Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for October appear below: Sales revenues, Apparel Variable expenses, Apparel Traceable fixed expenses, Apparel Sales revenues, Accessories Variable expenses, Accessories Traceable fixed expenses, Accessories 122,000 $730,000 316,000 $185,000 $837,000 436,000 Common fixed expenses totaled $431,000 and were allocated as follows: $212,000 to the Apparel business segment and $219,000 to the Accessories business segment. Required Prepare a segmented income statement in the contribution format for the company. Total CompanyApparel Accessories

Explanation / Answer

Particulats Apparel Accessories Total Sales   $                     7,30,000 $               8,37,000 $              15,67,000 Less:   Variable Expenses $                     3,16,000 $               4,36,000 $                7,52,000 Contribution Margin $                     4,14,000 $               4,01,000 $                8,15,000 Less: Fixed Expenses Traceable Fixed Expenses $                     1,85,000 $               1,22,000 $                3,07,000 Common Fixed Expenses $                     2,12,000 $               2,19,000 $                4,31,000 Net Profit   $                         17,000 $                   60,000 $                    77,000

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