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IT Professionals Guild, Inc. IT Professionals Guild, Inc., is a prominent association catering to IT professionals with 2 0 , 0 0 0 members. Headquartered

IT Professionals Guild, Inc.
IT Professionals Guild, Inc., is a prominent association catering to IT
professionals with 20,000 members. Headquartered centrally, it has
numerous local chapters across the United States. These chapters conduct
monthly meetings to exchange insights on the latest IT trends and
developments. The Guild's monthly publication, 'Tech Innovate,'
disseminates cutting-edge developments and thought leadership in the IT
sphere. In addition, the Guild publishes insightful research and reports and
offers professional development courses accredited for continuing education
credits for its members.
Statement of Revenues and Expenses For the Year Ended November 30
Revenues: $3,275,000
Expenses:
Salaries: $920,000
Personnel costs: $230,000
Occupancy costs: $280,000
Reimbursement of member costs to local chapters: $600,000
Other membership services: $500,000
Printing and paper: $320,000
Postage and shipping: $176,000
Instructors fees: $80,000
General and administrative: $38,000
Total expenses: $3,144,000
Excess of revenues over expenses: $131,000
Segment Information
Upon the board's request, a segmented income statement is to be prepared
for IT Professionals Guild, Inc., highlighting the financial contribution of
each segment. The Guild comprises four divisions: Membership Services,
Publication Subscriptions, Research and Reports, and Professional
Development. The financial analyst, Mike Doyle, is tasked with this
responsibility and has provided the following segment data:
-20,000 members each pay $100 annually. Of this, $20 is for the 'Tech
Innovate' subscription.
-2,500 additional 'Tech Innovate' subscriptions at $30 each were sold, plus
$100,000 from ads.
- The magazine's production costs are $7 per subscription for printing/paper
and $4 for postage.
-28,000 research publications sold at $25 each, with production costs of $4
for printing and $2 for postage per item.
- Professional development courses saw 2,400 one-day and 1,760 two-day
attendees, priced at $75 and $125 respectively.
Salary and Space Allocation
- Membership Services: $210,000 salary, 2,000 sq ft
- Publication Subscriptions: $150,000 salary, 2,000 sq ft
- Research and Reports: $300,000 salary, 3,000 sq ft
- Professional Development: $180,000 salary, 2,000 sq ft
- Corporate staff: $80,000 salary, 1,000 sq ft
Personnel costs remain at 25% of salaries for all divisions and the corporate
staff. The $280,000 in occupancy costs, apportioned based on square
footage, includes $50,000 for a data center utilized by the Research and
Reports Division for data storage.
- Costs for printing and paper, excluding those for publication subscriptions
and research reports, are associated with the Professional Development
Division materials.
- General and administrative expenses cover the comprehensive
management of the Guild. The corporate staff manages essential mailings
and administrative tasks.
Expenses directly linked to corporate staff and undividable costs remain
categorized as common costs, with no need to segregate variable from fixed
expenses.
Assignment Tasks
1. Prepare a segmented income statement for IT Professionals Guild, Inc.,
showing the contribution of each division.
2. Discuss the pros and cons of allocating all the Guild's costs to the four
divisions.

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