Companhia Bradesco, S.A., of Brazil, an industrial supply store chain, has two divisions. The company's contribution format income statement segmented by divisions for last year is given below (the currency in Brazil is the real, denoted here by R):

		Division
	Total Company	Plastics	Glass
Sales	R3,508,000	R2,001,000	R1,507,000
Variable expenses	1,729,320	960,480	768,840
Contribution margin	1,778,680	1,040,520	738,160
Traceable fixed expenses:
Advertising	607,400	296,000	311,400
Depreciation	229,400	116,000	113,400
Administration	429,700	211,000	218,700
Total	1,266,500	623,000	643,500
Division segment margin	512,180	R417,520	R94,660
Common fixed expenses	386,000
Net operating income	R126,180

Top management doesn't understand why the Glass Division has such a low segment margin when its sales are only 25 less than sales in the Plastics Division. Accordingly, management has directed that the Glass Division be further segmented into product lines. The following information is available on the product lines in the Glass Division:

	Glass Division Product Lines
	Flat Glass	Auto Glass	Specialty Glass
Sales	R496,000	702,000	309,000
Traceable fixed expenses:
Advertising	R79,600	R112,100	R119,700
Depreciation	R25,100	R55,600	R32,700
Administration	R29,500	R34,800	R42,100
Variable expenses as a percentage of sales	66%	40%	52%

Analysis shows that R112,300 of the Glass Division's administration expenses are common to the product lines.

Requirement 1:

Prepare a contribution format segmented income statement for the Glass Division with segments defined as product lines.(Negative amounts other than the expenses should be indicated by a minus sign. Omit the "R" sign in your response.)

	Product Line
	Glass Division	Flat Glass	Auto Glass	Specialty Glass
Sales	R	R	R	R
Variable expenses
Contribution margin
Traceable fixed expenses:
Advertising
Depreciation
Administration
Total
Product line segment margin		R	R	R
Common fixed expenses
Administration
Divisional segment margin	R

Requirement 2:

Management is surprised by Specialty Glass's poor showing and would like to have the product line segmented by market. The following information is available about the two markets in which Specialty Glass is sold:

	Specialty Glass Markets
	Domestic	Foreign
Sales	R206,000	R103,000
Traceable fixed expenses:
Advertising	R39,600	R80,100
Variable expenses as a percentage of sales	43%	70%

All of Specialty Glass's depreciation and administration expenses are common to the markets in which the product is sold. Calculate the following for the Specialty Glass product line with segments defined as markets.(Negative amounts should be indicated by a minus sign. Omit the "R" sign in your response.)

Domestic market segment margin	R
Foreign market segment margin	R
Product line segment margin	R

Requirement 3:

(a)

Refer to the statement prepared in (Requirement 1) above. The sales manager wants to run a special promotional campaign on one of the products over the next month. A market study indicates that such a campaign would increase sales of Flat Glass by R199,000 or sales of Auto Glass by R146,000. The campaign would cost R29,000. Calculate the increased net operating income.(Omit the "R" sign in your response.)

	Flat Glass	Auto Glass
Net operating income	R	R

(b)	Which product line should be chosen?
	(Click to select) Flat Glass Auto Glass