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Instructions X Gorman Nurseries Inc. grows poinsettias and fruit trees in a green houseursery operation. The following information was provided for the coming year. Poinsettias

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Instructions X Gorman Nurseries Inc. grows poinsettias and fruit trees in a green houseursery operation. The following information was provided for the coming year. Poinsettias $ 970,600 Sales Variable cost of goods sold Direct fixed overhead Fruit Trees $ 3,100,500 1,630,400 200,400 460,300 160,600 A sales commission of 3% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,300 for the poinsettia line and $86,600 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $799,600; common selling and administrative expense was estimated to be $449,600. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Labels and Amount Descriptions Reter to the list below for the exact wording of a label or an amount description within your income statement. Labels Add common fixed expenses Add direct fixed expenses Add variable expenses Less common fixed expenses Less direct fixed expenses Less variable expenses Amount Descriptions Common fixed overhead Common selling and administrative Contribution margin Direct fixed overhead Direct selling and administrative Operating loss Operating income Sales Segment margin Variable cost of goods sold Variable selling expense Segmented Income Statement Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. If an amount is negative, first enter a minus sign (-). Segmented Income Statement Gorman Nurseries Inc. Segmented Income Statement For the Coming Year 1 Poinsettias Fruit Trees Total 2 3 (Label) 4 5 5 6 7 (Label) 8 9 10 11 (Label) 12 15 14

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