Dorman, Inc., manufactures and sells water heaters through three divisions: Southwest, Mid¬

west, and Northeast. Each division is evaluated as a profit center. Data for each division for last year are as follows, in thousands of dollars.

Dorman, Inc., had corporate administrative expenses equal to $150,000; these were not al¬
located to the divisions.
Required:
1. Prepare a segmented income statement for Dorman, Lnc., for last year.
2. Comment on the performance of each of the divisions.

Transcribed Image Text:

Sales Cost of goods sold Selling and administrative expense Southwest Midwest Northcast $1,800 $940 $1,235 1,080 710 740 200 180 340