Data related to the income and expenses of the TNCO Inc. year ending December 31, 20X1, follow:

Prepare a partial departmental income statement showing the contribution margin and net income of each department.

Transcribed Image Text:

Allocated indirect expenses Outside department Inside department Interest income Gross profit Outside department Inside department Direct expenses Outside department Inside department $44,500 35,500 $400 $300,500 205,000 $145,500 85,000