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 S 760,000 $ 299,000 $ 132,000 779,000 $ 434,000 $ 190,000 Common fixed expenses totaled $297,600 and were allocated as follows: $131,000 to the Apparel business segment and $166,600 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company. Total Company ApparelAccessories

Explanation / Answer

Net income statement Total company Apparel Accessories Sales revenue 1539000 760000 779000 Less: variable expenses 733000 299000 434000 Contribution 806000 461000 345000 Less: Allocated fixed expenses 322000 132000 190000 Operating income 484000 329000 155000 Less: Common fixed expenses 297600 131000 166600 Net income 186400 198000 -11600

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