Jalapenos! is based in Pleasant Hill, California. The merchandising company has three divisions: Clothing, Food, and Spices. The Clothing division has two main product lines: T-shirts and sweatshirts. The company uses a shared warehousing facility. There are $50,000 in fixed warehousing costs each month, of which $40,000 are traceable to the three divisions based on the amount of square feet used. There is 100,000 square feet of warehouse space in the facility. The clothing division uses 60,000 square feet of the space, but 5,000 of that space isn't traceable to t-shirts or sweatshirts. Facts related to the divisions and products for the month ended October 31, 2012, follow:
	Clothing		Food	Spices
	T-shirts	Sweatshirts
Square feet used	40,000	15,000	30,000	10,000
Sales revenue	$300,000	$100,000	$150,000	$80,000
COGS (variable)	$210,000	$60,000	$60,000	$32,000
Fixed selling expenses	$7,000	$5,000	$3,000	$1,000
Variable selling expenses	$9,000	$8,500	$11,000	$2,500
Requirements:
1. Calculate the rate per square foot for Warehousing. Calculate the traceable fixed costs for each division and for each product in the Clothing division.
2. Prepare an income statement for the company using the contribution margin approach. Calculate net income for the company, divisional segment margin for both divisions, and product segment margin for both products.