Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. Sales Variable cost of goods sold Direct fixed overhead Poinsettias Fruit Trees $970,000 460,000 160,000 $3,100,000 1,630,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Gorman Nurseries Inc. Segmented Income Statement For the Coming Year Poinsettias 970,000 Fruit Trees Total 3,100,000 4,070,000 Sales Less variable expenses: Variable cost of goods sold Variable selling expense Contribution margin -460,000 X -1,630,000 X -2,090,000 X -38,800 X -124,000 X -162,800 X 471,200 1,346,000 1,817,200 Less direct fixed expenses: Direct fixed overhead -160,000 X -200,000 X -360,000 X Direct selling and administrative -146,000 X -87,000 X -233,000 X Segment margin 165,200 1,059,000 1,224,200 Less common fixed expenses: Common fixed overhead Common selling and administrative Operating Loss -800,000 X -450,000 X -25,800