Music Teachers, Inc., is an educational association for music teachers that has 19,600 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 $3,297, 300 Revenues Expenses: Salaries 944,eee 236,eee 203,eee 588, ee0 55e, 0ee 329,eee Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors fees General and adninistrative Total expenses 159,eee 76,e00 33,000 3,110,000 $ 187, 380 Excess of revenues over expenses The board of directors of Music Teachers, Inc... has requested that a segmented income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented income statement, and he has gathered the following dato a. The 19,600 members of the association pay dues of$100 per year, of which $20 covers a one-year subscription to the Teachers Forum, Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division b. A total of 2.800 one-year subscriptions to Teachers Forum were aliso soid last year to nonmembers and libraries at $36 per subscription. In addition to subscriptions. the journal generated $104,000 in advertising revenues c. The costs to produce the Teachers Forum magazine included $9 per subscription for printing and paper and $4 per subscription for postage and shipping d. A total of 28.300 technical reports and professional texts were sold ov the Books and Recorts Division at an averace selling orice c. The costs to produce the Teachers' Forum magazine included $9 per subscription for printing and paper and $4 per subscription for postage and shipping d. A total of 28.300 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publiceation were $4 for printing and paper and $2 for postage and shipping e. The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tuition cost of $75 each and were attended by 2,500 students. A total of 1,900 students took two-day courses at a tuition cost of $125 for each student. Outside instructors were paid to teach some courses f Salary costs and space occupied by division follow Space Occupied (square feet) 3,e0e 1,eee 1,e00 2,e00 3,e00 Salaries $ 211,000 159,000 3ee,8ee 18e,ee 94,e00 Membership Magazine Subscriptions Books and Reports Continuing Education Corporate staff Total $ 944,000 10,ee0 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $203,000 in occupancy costs includes $53.000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division h. General and administrative expenses include costs relating to overal administration of the association es a whole. The company's corporate staff does some maling of materials for general administrative purposes The expenses that can be traced or assigned to the corporate staf as well as any cther expenses that are not traceable to the segments, wil be treated os common costs It is not necessary to distinguish between variable and fixed costs Required: 1 Prepare a segmented income statementt for Music Teachers. inc as well es results for the 0550ciat on s5 whole Tals stetement snould show the segment margn for each dlvision Mclo Tish, Ino Se dd Ino amnt For the Year Ended November 30 Divicion Continulng Eduoation Megaing Bubcorlptions Accoolision Total Blooks & Reports Membership Sales Total nevanues Expansas traceable to segments Tola tracasbie cxpenses Common axponses not tracebla to divions Tcas common axponsos