The Suzanne Elsea Company has three divisions. The following information is available for the year ended December 31, 2004:

The sales for the company are \($200,000\) for the Central Division, and \($400,000\) for the Southern Division, and \($600,000\) for the Western Division. Variable costs for the Central Division are \($150,000\), variable costs for the Southern Division are \($300,000\), and variable costs for the Western Division are \($450,000\). Direct fixed costs of the Central Division are \($20,000\), direct fixed costs of the Southern Division are \($54,000\), and direct fixed costs of the Western Division are \($100,000\). The company allocates common fixed costs to segments based on relative sales. Common fixed costs for the company are $102,000.

Required:

a. Prepare a segment income statement for the company which distributes common fixed costs to segments based on relative sales. Your answer should include a column for the total company and columns for each segment.

b. Based on your answer for part a, which segment seems to have generated the least profit?

c. Prepare a segment income statement for the company which does not distribute common fixed cost to segments. Your answer should include a column for the total company and columns for each segment.

d. Based on your answer for part c, which segment seems to have generated the most profit?