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Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows:

Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows:

SCRIPT, INC. Product Line and Company Income Statements For Month of September
Pens Pencils Total
Sales $25,000 $30,000 $55,000
Less variable expenses (10,000) (12,000) (22,000)
Contribution margin 15,000 18,000 33,000
Less direct fixed expenses (10,000) (9,000) (19,000)
Product margin $5,000 $9,000 $14,000
Less common fixed expenses (6,000)
Net income $8,000

Pens and pencils are sold in two territories, Florida and Alabama, as follows:

Florida Alabama
Pen sales $16,000 $9,000
Pencil sales 8,000 22,000
Total sales $24,000 $31,000

The preceding common fixed expenses are traceable to each territory as follows:

Florida fixed expenses $2,000
Alabama fixed expenses 3,000
Home office administration fixed expenses 1,000
Total common fixed expenses $6,000

The direct fixed expenses of pens, $10,000, and of pencils, $9,000, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments. Prepare income statements segmented by territory for September, including a column for the entire firm. Do not use negative signs with your answers.

Script, Inc. Territory and Company Income Statements For the Month of September
Florida Alabama Company Totals
Sales:
Pens $Answer

$Answer

$Answer

Pencils Answer

Answer

Answer

Total sales Answer

Answer

Answer

Variable costs:
Pens Answer

Answer

Answer

Pencils Answer

Answer

Answer

Total Answer

Answer

Answer

Contribution margin Answer

Answer

Answer

Direct fixed expenses Answer

Answer

Answer

Territory margin $Answer

$Answer

Answer

Common fixed expenses:
Pens Answer

Pencils Answer

Home office Answer

Total Answer

Net income $Answer

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