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Problem 10-25 (Part Level Submission) Trent Weaver was reviewing the latest income statement for Taryn Enterprises. For the second year in a row, the Collectibles division was showing a negative segment margin, and Trent thought it was time to close the division to increase the companys operating income. The income statement that he examined follows.

Promotions Division	Collectibles Division	Total
Revenue	$5,304,200	$2,860,000	$8,164,200
Less variable expenses	3,668,500	1,646,300	5,314,800
Contribution margin	1,635,700	1,213,700	2,849,400
Less traceable fixed expenses	951,800	1,281,400	2,233,200
Segment margin	$683,900	$(67,700	)	616,200
Common fixed costs	583,000
Net operating income	$33,200

When Trent broke the news, Taylor Tatum, manager of the Collectibles division, was upset. Taylor thought that Trent could be making a snap judgment, and suggested that he look at the divisions detailed operating results. The Collectibles division is composed of two groups, Sports Memorabilia and Coins and Stamps. Sports Memorabilia accounts for 60% of the divisions sales and contribution margin; Coins and Stamps accounts for the other 40%. Sports Memorabilias traceable fixed costs are $811,900; Coins and Stamps, $246,700.

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(a) Prepare a segment margin income statement for the Collectibles 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 0 decimal places, e.g. 5,125.)

Sports Memorabilia	Coins and Stamps	Total Collectibles Division
Operating incomeRevenueCommon fixed expensesContribution marginVariable expensesTraceable fixed expensesSegment margin	$	$	$
AddLess: RevenueVariable expensesCommon fixed expensesTraceable fixed expensesOperating incomeSegment marginContribution margin
Contribution marginSegment marginOperating incomeCommon fixed expensesRevenueVariable expensesTraceable fixed expenses
Traceable fixed expensesSegment marginCommon fixed expensesOperating incomeRevenueVariable expensesContribution margin
Variable expensesContribution marginSegment marginOperating incomeRevenueTraceable fixed expensesCommon fixed expenses	$	$
Contribution marginRevenueSegment marginOperating incomeVariable expensesTraceable fixed expensesCommon fixed expenses
Traceable fixed expensesSegment marginVariable expensesCommon fixed expensesOperating incomeRevenueContribution margin	$

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