: Segmented income statement}

Utility Products, Inc., manufactures two products, brooms and mops, which are sold in two territories designated by the company as North Territory and South Territory. The following income statement prepared for the company shows the product-line segments.

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Utility Products Inc. Income Statement Total Brooms Sales Less variable expenses $1,000,000 $600,000 100% $400,000 Mops 100% 600,000 420,000 70 180,000 45 Contribution margin. $ 400,000 $180,000 30% $220,000 55% Less direct fixed costs 200,000 50,000 150,000 Segment margin $ 200,000 $130,000 $ 70,000 Less common fixed costs. 120,000 Net income 80,000