Question
Hatch Company has two divisions: O and E. During the year just ended, Division O had a segment margin of $9,000 and variable costs equal
Hatch Company has two divisions: O and E. During the year just ended, Division O had a segment margin of $9,000 and variable costs equal to 70% of sales. Traceable fixed costs for Division E were $19,000. Hatch Company as a whole had a contribution margin of 40%, a segment margin of $25,000, Common costs of $10,000 and sales of $200,000.
Required:Given this data,prepare a segmented income statement in the contribution formatshowing in columnsthe Total as well as amounts for Division0and E.Make sure that you properly label the segmented income statement.Only the Segmented Income Statement will be marked.Your calculations will not be marked.
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