Lollipop Company's top management is evaluating the performance of the following product lines classified as profit centers:

Apple Strawberry

Net sales P5,000,000 P6,000,000

Sales commission 250,000 300,000

Direct materials 2,000,000 2,600,000

Direct labor 1,260,000 1,300,000

Division costs:

Indirect materials 152,000 200,000

Supervision 220,000 220,000

Repairs and maintenance 300,000 320,000

Equipment operating costs 120,000 120,000

Depreciation of equipment 240,000 240,000

Allocated company costs

Plant depreciation 250,000 300,000

Other fixed costs 400,000 350,000

Operating income (P192,000) P50,000

Other data:

1. Product line managers have the authority to purchase all necessary materials in production and hire workers.
2. Acquisition and disposal of equipment is subject to approval of top management. However, operations of the equipment are the responsibility of the line managers.

Required:

Prepare asegmented income statement for the two product lines and evaluate the performance of the profit centers.