Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year.

Line Item Description	Poinsettias	Fruit Trees
Sales	$970,000	$3,100,000
Variable cost of goods sold	460,000	1,630,000
Direct fixed overhead	160,000	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

Line Item Description	Poinsettias	Fruit Trees	Total
Cost of Goods SoldOperating IncomeSales	$- Select -	$- Select -	$- Select -
Less variable expenses:	blank	blank	blank
Common fixed overheadCommon selling and administrativeDirect fixed overheadDirect selling and administrativeVariable cost of goods soldVariable selling expense	- Select -	- Select -	- Select -
Common fixed overheadCommon selling and administrativeDirect fixed overheadDirect selling and administrativeVariable selling expense	- Select -	- Select -	- Select -
Contribution margin	$Contribution margin	$Contribution margin	$Contribution margin
Less direct fixed expenses:	blank	blank	blank
Common fixed overheadCommon selling and administrativeDirect fixed overheadVariable selling expenseVariable cost of goods sold	- Select -	- Select -	- Select -
Common fixed overheadCommon selling and administrativeDirect selling and administrativeVariable selling expenseVariable cost of goods sold	- Select -	- Select -	- Select -
Segment margin	$Segment margin	$Segment margin	$Segment margin
Less common fixed expenses:	blank	blank	blank
Common fixed overheadCommon selling and administrativeCost of goods soldDirect fixed overheadDirect selling and administrative	blank	blank	- Select -
Common fixed overheadCommon selling and administrativeCost of goods soldDirect direct overheadDirect selling and administrative	blank	blank	- Select -
SalesOperating LossOperating IncomeTotal Segment Revenue	blank	blank	$- Select -