Segment reporting}

Numeric Software, Inc., has two product lines. The income statement for the year ended December 31 shows the following:

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Numeric Software, Inc. Product Line and Company Income Statement For the Year Ended December 31, 2008 Calc 2 Calc 4 Total Sales $40,000 $60,000 $100,000 Less variable expenses 16,000 24,000 40,000 Contribution margin $24,000 $36,000 $ 60,000 Less direct fixed expenses 16,000 14,000 30,000 Product margin..... $ 8,000 $22,000 $ 30,000 Less common fixed expenses 12,000 Net income....... $ 18,000 The products, Calc 2 and Calc 4, are sold in two territories, North and South, as follows: Calc 2 Calc 4 Total sales North South $24,000 $16,000 18,000 42,000 $42,000 $58,000