Daniel Jackson was reviewing the latest income statement for Blossom Communications. For the second year in a row, the Audio division was showing a negative segment margin, and Daniel thought it was time to close the division to increase the company's operating income. The income statement that he examined follows. Video Division Audio Division Total Sales revenue $5,301,100 $2,860,100 $8,161,200 Less variable expenses 3,660,600 1,645,900 5,306,500 Contribution margin 1,640,500 1,214,200 2,854,700 Less traceable fixed expenses 943,000 1,284,900 2,227,900 Segment margin $697,500 $(70,700) 626,800 Common fixed costs 565,000 Net operating income $61,800 When Daniel broke the news, Nancy White, manager of the Audio division, was upset. Nancy thought that Daniel could be making a decision too quickly, and suggested that he look at the division's detailed operating results. The Audio division is composed of two groups, Streaming and CD. Streaming accounts for 75% of the division's sales and contribution margin; CD accounts for the other 25%. Streaming's traceable fixed costs are $451,200; CD. $351,200. (a) Your answer is partially correct. Prepare a segment margin income statement for the Audio division that shows the segment margin of each group. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125) and round answers to O decimal places, e.g. 5,125.) Revenue Less Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Operating income Streaming CD 451200 i 351200 i Total