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 $ 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 Apparel Accessories

Explanation / Answer

SEGMENTED INCOME STATEMENTS Segments of Company Total Apparel Acessories Service Revenue                     1,539,000.00     760,000.00 779,000.00 Less: Variable Expenses                        733,000.00     299,000.00 434,000.00 contribution margin                        806,000.00     461,000.00 345,000.00 Less: traceable fixed expenses                        322,000.00     132,000.00 190,000.00 Profit margin controllable by segment manager                        484,000.00     329,000.00 155,000.00 Less: common fixed expenses                        297,600.00 EBIT                        186,400.00

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