Jim Coston was reviewing the latest income statement for Trenton Communications. For the second year in a row, the Audio division was showing a negative segment margin, and Jim thought it was time to close the division to increase the companys operating income. The income statement that he examined follows.

Video Division

Audio Division

Total

Sales revenue		$5,309,800		$2,861,100		$8,170,900
Less variable expenses		3,667,000		1,645,000		5,312,000
Contribution margin		1,642,800		1,216,100		2,858,900
Less traceable fixed expenses		945,600		1,277,300		2,222,900
Segment margin		$697,200		$(61,200	)	636,000
Common fixed costs						598,000
Net operating income						$38,000

When Jim broke the news, Chloe Sams, manager of the Audio division, was upset. Chloe thought that Jim could be making a snap judgment, and suggested that he look at the divisions detailed operating results. The Audio division is composed of two groups, Streaming and CD. Streaming accounts for 75% of the divisions sales and contribution margin; CD accounts for the other 25%. Streamings traceable fixed costs are $452,200; CD, $352,200.

Prepare a segment margin income statement for the Audio division that shows the segment margin of each group. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125) and round answers to 0 decimal places, e.g. 5,125.)

Streaming

CD

Total Audio Division

		Streaming		CD		Total Audio Division
Segment marginOperating incomeRevenueVariable expensesCommon fixed expensesTraceable fixed expensesContribution margin		$		$		$
LessAdd: Traceable fixed expensesOperating incomeContribution marginRevenueSegment marginCommon fixed expensesVariable expenses
Traceable fixed expensesSegment marginVariable expensesRevenueContribution marginOperating incomeCommon fixed expenses
Contribution marginSegment marginRevenueOperating incomeVariable expensesCommon fixed expensesTraceable fixed expenses
Variable expensesContribution marginCommon fixed expensesTraceable fixed expensesOperating incomeSegment marginRevenue		$		$
Common fixed expensesVariable expensesSegment marginContribution marginOperating incomeTraceable fixed expensesRevenue
Contribution marginCommon fixed expensesRevenueVariable expensesTraceable fixed expensesSegment marginOperating income						$