Victor’s Sporting Goods is a retailer of sporting equipment. Last year, Victor’s Sporting Goods’ sales revenues totalled $8,000,000. Total expenses were $2,100,000. Of this amount, approximately $1,500,000 were variable, while the remainder were fixed. Since Victor’s Sporting Goods offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Assume that Victor’s Sporting Goods gathers information on the sales of its products based on two departments: Winter Sports and Summer Sports. Winter Sports revenues are $4,000,000 of the total $8,000,000 and the department has an average contribution margin of 70%, while Summer Sports brings in the remaining revenues. Of the fixed costs, $250,000 can be directly traced to Winter Sports and $300,000 can be traced to Summer Sports. Prepare a segmented contribution margin income statement for Victor’s Sporting Goods. 

Transcribed Image Text:

Check sum: Common costs are $50,000