Case 6-30 Service Organization; Segment Reporting (LO6-4] Music Teachers, Inc., is an educational association for music teachers that has 19,900 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 qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. $3,355,100 Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 Revenues Expenses: Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees General and administrative Total expenses Excess of revenues over expenses 967,000 241,750 235,000 530,000 550,000 328,000 168,000 71,000 32,000 3,122,750 $ 232,350 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 ended November 30 Division Association Total Magazine Subscriptions Books & Reports Continuing Education Membership Sales: $ $ 1,592,000 $ Membership dues Non-member journal subscriptions Advertising Reports and texts Continuing education courses 1,990,000 121,600 106,000 717,500 398,000 121,600 106,000 | 717,500 420.000 420.0001 Total revenues 3,355,100 1,592,000 625,600 717,500 420,000 874,000 218,500 181,000 530.000 550,000 226,000 56,500 54,000 530,000 550,000 159,000 39,750 18,000 Expenses traceable to segments: Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees 300,000 75,000 73,000 189,000 47,250 36,000 71,000 71,000 2,424,500 930,600 1,416,500 175,500 216,750 408,850 448,000 269,500 343,250 76,750 $ $ $ $ Total traceable expenses Division segment margin(loss) Common expenses not traceable to divisions: Salaries-corporate staff Personnel costs Occupancy costs Postage and shipping General and administrative 93,000 23,250 54,000 32,000 Case 6-30 Service Organization; Segment Reporting (LO6-4] Music Teachers, Inc., is an educational association for music teachers that has 19,900 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 qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. $3,355,100 Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 Revenues Expenses: Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees General and administrative Total expenses Excess of revenues over expenses 967,000 241,750 235,000 530,000 550,000 328,000 168,000 71,000 32,000 3,122,750 $ 232,350 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 ended November 30 Division Association Total Magazine Subscriptions Books & Reports Continuing Education Membership Sales: $ $ 1,592,000 $ Membership dues Non-member journal subscriptions Advertising Reports and texts Continuing education courses 1,990,000 121,600 106,000 717,500 398,000 121,600 106,000 | 717,500 420.000 420.0001 Total revenues 3,355,100 1,592,000 625,600 717,500 420,000 874,000 218,500 181,000 530.000 550,000 226,000 56,500 54,000 530,000 550,000 159,000 39,750 18,000 Expenses traceable to segments: Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees 300,000 75,000 73,000 189,000 47,250 36,000 71,000 71,000 2,424,500 930,600 1,416,500 175,500 216,750 408,850 448,000 269,500 343,250 76,750 $ $ $ $ Total traceable expenses Division segment margin(loss) Common expenses not traceable to divisions: Salaries-corporate staff Personnel costs Occupancy costs Postage and shipping General and administrative 93,000 23,250 54,000 32,000