Allentown, Inc., is a company with two segments, X and Y. Its revenues and expenses for 2014 follow:
		Segment X	Segment Y	Total
Net Sales		$96,000	$144,000	$240,00
Direct Expenses:
Cost of goods sold		45,000	99,000	144,000
Selling		13,680	7,200	20,880
Administrative:
Uncollectible accounts		3,000	1,800	4,800
Insurance		2,400	1,200	3,600
Interest		480	240	720
Indirect Expenses (all fixed):
Selling				18,000
Administrative:				25,200
a) Prepare a schedule showing the contribution margin, the contribution to indirect expenses of each segment, and net income for the company as a whole.
Do not allocate indirect expenses to the segments.
b) Assume that indirect selling expenses are to be allocated on the basis of net sales and thatindirect administrative expenses.
Prepare a statement (starting with the contribution to indirect expenses) that shows the net income of each segment.
c) Comment on the appropriateness of the income amounts shown in part a and b for determining the income contribution of the segments.