Bender Company is evaluating its three divisions, the North American Division, the South American Division and the European Division.The following financial information is for the consolidated company:

Revenues$10,600,000

Variable costs4,240,000

Contribution margin6,360,000

Fixed costs6,000,000

Net income360,000

During 2014 revenues for the three segments were $3,200,000, $2,900,000 and $4,500,000 respectively.Variable costs for all three segments were 40%.Fixed costs of $2,000,000 have been assigned to each segment.85% of the North American fixed costs are traceable, 70% of the South American fixed costs are traceable and 90% of the European fixed costs are traceable.

Required:

1. a segmented income statement showing the details for the divisions and the company as a whole.

2.Should any of the divisions be considered for elimination? Explain.

3.Based on the segmented income statement, identify specific items that management should investigate further.