Segment Margin Statements Professional Management, Inc., is a company that sponsors seminars for executives. It has two profit centers, or divisions: a time-management group and a money-management group.

Financial information for the two divisions for the year just ended follows:

Of these costs, printing and advertising are direct fixed costs, whereas mailing, hotel rental, and travel are variable costs. Using this information, prepare segment margin statements for the two divisions. Include in your statements the computation for contribution margin.

Transcribed Image Text:

Money Time Management Management Revenue $842,000 $965,000 Mailing costs 48,000 102,000 Printing costs 146,000 98,000 Hotel rental costs 425,000 501,000 Travel expenses Advertising costs 72,000 60,000 108,000 106,000