Question

Data for January for Bondi Corporation and its two major business segments, North and South, appear below: Sales revenues, North $660,000 Variable expenses, North $383,000 Traceable fixed expenses, North $79,000 Sales revenues, South $510,000 Variable expenses, South $291,000 Traceable fixed expenses, South $66,000 In addition, common fixed expenses totaled $179,000 and were allocated as follows: $93,000 to the North business segment and $86,000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:_______

Answer 1

Answer:

Net income                               105,000

Explanation:

Income statement for North Segment

                                                     $

Revenue                                   660,000

variable cost                            ( 383,000)

Contribution                            277,000

Fixed expenses                        (79,000)

income before allctd. cost    198000

Allocated fixed cost                 (93,000)

Net income                               105,000