3 20 pot Music Teachers, Inc. is an educational association for music teachers that has 19,600 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers Forum is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that quality for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below, Pasi Teachers, the Statement of Revenue and Expenses For the Year Ended over evenues 33,295,300 Expenses Salaries 972,000 Personnel costs 243,00 Occupancy costs >20,000 burst of weber costs to local chapters 500.000 Other hip services 510.000 Printing and paper Postace and shipping 195.000 terites 71.000 General administrative M200 Total mense 30,000 $155.00 The board of directors of Music Teachers, Inc bos requested that segmented income statement be prepared showing the contribution of each segment to the sociation The association has four segments Membership Division Magazine subscriptions Help Save & 3 ch The board of directors of Music Teachers, Inc., has requested that a segmented income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division Magazine Subscriptions Division Books and Reports Division and Continuing Education Division, Mike Doyle has been assigned responsibility for preparing the segmented income statement and he has gathered the following data: a. The 19.800 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers Forum Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription (520) should be assigned to the Magazine Subscriptions Division b. A total of 3.200 one year subscriptions to Teachers Forum were also sold last year to nonmembers and libraries at $34 per subscription. In addition to subscriptions, the journal generated 5104,000 in advertising revenues. c. The costs to produce the Teachers' Forum Magazine included 57 per subscription for printing and paper and $4 per subscription for postage and shipping d. A total of 28 200 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping e The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tuition cost of $75 each and were attended by 2.500 students. A total of 1840 students took two-day courses at a tultion cost of $125 for each student Outside Instructors were paid to teach some courses Salary costs and space occupied by division follow SACO ject Ch 5-7 ved Help Save & Ex Check COSLO OCIO were By 2,DU SUALIOS KU U TOOK W-uey courses LO COSLO OLD for each student Outside instructors were paid to teach some courses Salary costs and space occupied by division follow Space Occupied ( se feet) 3.000 mbership Magazine subscriptions Hooks and Reports Continut ducation Corporate statt Salaris $ 228,000 150,000 306, 200.000 12,000 $972.000 11,000 2.0 000 10,000 Total Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $229,000 in occupancy costs which can be allocated to segments based on their square feet occupied) includes $51000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division n General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate stoff does some maling of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff as well as any other expenses that are not traceable to the segments will be treated as common costs. It is not necessary to distinguish between Variable and fixed costs Required: 1. Prepare a segmented income statement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole Music Teachers, Inc. Segmented Income Statement For the year anded November 30 Division Association Magazine Total Membership Subscriptions Books & Reports Continuing Education 0 Sie Membership dues Non ember journal subscriptions Advertising Reports and texts Continuing education courses 0 $ 1.960.000 5 1,568,000 $ 108 800 0 104.000 0 705.000 0 417.500 0 392,000 5 108,800 104.000 0 0 of $ 0 0 705,000 0 O 417.500 3.295,300 Expenses cateto segments: 1,568.000 604,000 705,000 417.500 Personne costs 220.000 243.000 228.000 0 0 0 ol 0 Total revenues 3,295,300 1,568,000 604,800 705,000 417,500 0 0 0 0 0 0 0 0 Expenses traceable to segments: Salaries Personnel costs Occupancy costs Printing and paper Postage and shipping Instructors fees Reimbursement of member costs to local chapters Other membership services 0 228.000 243.000 229.000 326,000 196,000 71,000 560,000 510,000 0 0 0 0 0 0 228,000 0 0 0 0 0 0 0 0 228,000 1,340,000 S 0 0 0 0 0 0 604,800 $ 0 0 0 0 0 Total traceable expenses 0 2,362,000 933,300 $ 0 705,000 $ 417,500 82,000 Common expenses not traceable to divisions: Solaries-corporate staff Portone con Occupancy costs Gener and administrative os N 0 Instructors fees Reimbursement of member costs to local chapters Other membership services 71,000 560,000 510,000 0 2,362,000 933,300 0 0 0 0 228,000 1,340,000 $ 0 0 0 0 0 604,800 $ 0 0 0 0 Total raceable expenses 0 705,000$ 0 417,500 $ 82.000 Common expenses not traceable to divisions: Salaries corporate staff Personnel costs Occupancy costs General and administrative Total common expenses 82,000 861,300 5 3 20 pot Music Teachers, Inc. is an educational association for music teachers that has 19,600 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers Forum is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that quality for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below, Pasi Teachers, the Statement of Revenue and Expenses For the Year Ended over evenues 33,295,300 Expenses Salaries 972,000 Personnel costs 243,00 Occupancy costs >20,000 burst of weber costs to local chapters 500.000 Other hip services 510.000 Printing and paper Postace and shipping 195.000 terites 71.000 General administrative M200 Total mense 30,000 $155.00 The board of directors of Music Teachers, Inc bos requested that segmented income statement be prepared showing the contribution of each segment to the sociation The association has four segments Membership Division Magazine subscriptions Help Save & 3 ch The board of directors of Music Teachers, Inc., has requested that a segmented income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division Magazine Subscriptions Division Books and Reports Division and Continuing Education Division, Mike Doyle has been assigned responsibility for preparing the segmented income statement and he has gathered the following data: a. The 19.800 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers Forum Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription (520) should be assigned to the Magazine Subscriptions Division b. A total of 3.200 one year subscriptions to Teachers Forum were also sold last year to nonmembers and libraries at $34 per subscription. In addition to subscriptions, the journal generated 5104,000 in advertising revenues. c. The costs to produce the Teachers' Forum Magazine included 57 per subscription for printing and paper and $4 per subscription for postage and shipping d. A total of 28 200 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping e The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tuition cost of $75 each and were attended by 2.500 students. A total of 1840 students took two-day courses at a tultion cost of $125 for each student Outside Instructors were paid to teach some courses Salary costs and space occupied by division follow SACO ject Ch 5-7 ved Help Save & Ex Check COSLO OCIO were By 2,DU SUALIOS KU U TOOK W-uey courses LO COSLO OLD for each student Outside instructors were paid to teach some courses Salary costs and space occupied by division follow Space Occupied ( se feet) 3.000 mbership Magazine subscriptions Hooks and Reports Continut ducation Corporate statt Salaris $ 228,000 150,000 306, 200.000 12,000 $972.000 11,000 2.0 000 10,000 Total Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $229,000 in occupancy costs which can be allocated to segments based on their square feet occupied) includes $51000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division n General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate stoff does some maling of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff as well as any other expenses that are not traceable to the segments will be treated as common costs. It is not necessary to distinguish between Variable and fixed costs Required: 1. Prepare a segmented income statement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole Music Teachers, Inc. Segmented Income Statement For the year anded November 30 Division Association Magazine Total Membership Subscriptions Books & Reports Continuing Education 0 Sie Membership dues Non ember journal subscriptions Advertising Reports and texts Continuing education courses 0 $ 1.960.000 5 1,568,000 $ 108 800 0 104.000 0 705.000 0 417.500 0 392,000 5 108,800 104.000 0 0 of $ 0 0 705,000 0 O 417.500 3.295,300 Expenses cateto segments: 1,568.000 604,000 705,000 417.500 Personne costs 220.000 243.000 228.000 0 0 0 ol 0 Total revenues 3,295,300 1,568,000 604,800 705,000 417,500 0 0 0 0 0 0 0 0 Expenses traceable to segments: Salaries Personnel costs Occupancy costs Printing and paper Postage and shipping Instructors fees Reimbursement of member costs to local chapters Other membership services 0 228.000 243.000 229.000 326,000 196,000 71,000 560,000 510,000 0 0 0 0 0 0 228,000 0 0 0 0 0 0 0 0 228,000 1,340,000 S 0 0 0 0 0 0 604,800 $ 0 0 0 0 0 Total traceable expenses 0 2,362,000 933,300 $ 0 705,000 $ 417,500 82,000 Common expenses not traceable to divisions: Solaries-corporate staff Portone con Occupancy costs Gener and administrative os N 0 Instructors fees Reimbursement of member costs to local chapters Other membership services 71,000 560,000 510,000 0 2,362,000 933,300 0 0 0 0 228,000 1,340,000 $ 0 0 0 0 0 604,800 $ 0 0 0 0 Total raceable expenses 0 705,000$ 0 417,500 $ 82.000 Common expenses not traceable to divisions: Salaries corporate staff Personnel costs Occupancy costs General and administrative Total common expenses 82,000 861,300 5