Forever Memories Company has two divisions and the following information available:

a. Net sales were $150,000. $90,000 was attributed to the Cherry Division.

b. Variable costs were $80,000. 40% was attributed to the Grape Division.

c. Total separable fixed costs controllable by division managers were $32,000, of which $20,000

applied to the Cherry Division.

d. Total separable fixed costs, not controllable by division managers were $14,000 in the Cherry

Division and $4,000 in the Grape Division.

e. Unallocated costs were $7,000.

Required:

Prepare a contribution approach income statement for the company as a whole and each division.