Item 4

Data for January for Bondi Corporation and its two major business segments, North and South, appear below:

Sales revenues, North	$ 759,000
Variable expenses, North	$ 440,500
Traceable fixed expenses, North	$ 90,900
Sales revenues, South	$ 586,800
Variable expenses, South	$ 334,900
Traceable fixed expenses, South	$ 76,000

In addition, common fixed expenses totaled $206,000 and were allocated as follows: $107,000 to the North business segment and $99,000 to the South business segment.

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is: