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Crane Cullumber Flooring's accountant, has prepared the following income statement for the month of May. Residential Commercial Total Sales revenue $ 2,784,000 $ 3,149,000 $
Crane Cullumber Flooring's accountant, has prepared the following income statement for the month of May. Residential Commercial Total Sales revenue $ 2,784,000 $ 3,149,000 $ 5,933,000 Variable expenses 1,330,000 2,543,000 3,873,000 Contribution margin 1,454,000 606,000 2,060,000 Fixed expenses 669,000 639,000 1,308,000 Operating income $ 785,000 $ (33,000) $ 752,000 In preparing the income statement, Crane was unsure what to do with $264,000 in corporate fixed expenses that cannot be traced to a division. Since these costs were incurred to run the business, and he believed that each division benefited equally, he just allocated half to each division. (b) Prepare a segment margin income statement that highlights each division's contribution to corporate profits. Omit the heading. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Prepare a segment margin income statement that highlights each division's contribution to corporate profits. Omit the heading. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Residential Commercial Total $ $ $ $
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