Labels and Amount Descriptions Refer to the list below for the exact wording of a label or an amount description within your income statement. abels Add common fixed expenses Add direct fixed expenses Add variable expenses Less common fixed expenses Less direct fixed expenses Less variable expenses Common fixed overhead Commo Contribution margin Direct fixed overhead Direct selling and administrative Operating loss Operating income Sales Segment margin Variable cost of goods sold Variable selling expenses n selling and administrative Segmented Income Statement Instructions Labels and Amount Descriptions Segmented Income Statement Instructions Knitline Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. Sweaters Jackets 210,500 451,400 Sales Variable cost of goods sold Direct fixed overhead 1 144,200 196,500 24,700 48,400 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $20,400 for the sweater line and $49,500 for the jacket line Common fixed overhead for the factory was estimated to be $46,000. Common selling and administrative expense was estimated to be $13,400. Required: 1. Prepare a segmented income statement for Knitline for the coming year, using variable costing. 2. Suppose that next year, all revenues and costs are expected to remain the same except for direct fixed overhead expense, which will go up by $13,280 for one of the product lines due to costs related to new equipment. Does it matter which line (sweaters or jackets) requires the new equipment? Why