Music Teachers, Inc., is an educational association for music teachers that has 20,200 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. $3,385,200 I Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 Revenues Expenses: Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping InstructorsFees General and administrative Total expenses Excess of revenues over expenses 1.001,000 250, 250 228,000 ee 682.ee 329, ee 156,00 31.000 3:257, 258 $ 117,958 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 data: a. The 20,200 members of the association pay dues of $100 per year, of which $20 cove's a one-year subscription to the Teachers Forum Other benefits include membership in the association and chapter afflation The portion of the dues covering the magazine Subscription (520) should be assigned to the Magzine Subscriptions Division a. The 20,200 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 3.700 one-year subscriptions to Teachers' Forum were also sold last year to nonmembers and libraries at $36 per subscription. In addition to subscriptions, the journal generated $107.000 in advertising revenues. c. The costs to produce the Teachers' Forum magazine included $8 per subscription for printing and paper and $4 per subscription for postage and shipping. d. A total of 28,400 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 publication 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 1,820 students took two-day courses at a tuition cost of $125 for each student. Outside instructors were paid to teach some courses, 1. Salary costs and space occupied by division follow: Space Occupied (square feet) 3,000 1,000 1 Salaries 215,000 155,000 336,000 200,000 95.000 $1,801,880 Membership Magazine subscriptions Books and Reports Continuing Education Corporate staff Total 3.00 10,000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $228.000 in occupancy costs includes $57,000 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. Q. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $228.000 in occupancy costs includes $57,000 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 ys Book eferences h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some mailing of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs. 2. Prepare a segmented income statement for Music Teachers, Ine. This statement should show the segment margin for each aivistein as well as results for the association as a whole Musie Teachers, Inc. Segmented Income Statement For the year ended November 30 Division Association Magazine Total Membership Subscriptions Books & Reports Continuing Education Sales Membership dues Non-member journal subscriptions Advertising Reports and texts Continuing education courses $ 2.020.000 1.610,000 133,200 107.000 710.000 415.000 404.000 133.200 107.000 T10000 415.000 Segmented Income Statement For the year ended November 30 Division Association Magazine Books & Continuing Education Total Membership Subscriptions Reports 1.816,000 s Sales: Membership dues Non-member journal subscriptions Advertising Reports and texts Continuing education courses $ 2,020,000 $ 133,200 107.000 710.000 415,000 404,000 133.200 107.000 710,000 415,000 3,385,200 1,616,000 644,200 710.000 415,000 Total revenues Expenses traceable to segments: Salaries Personnel costs 900,000 220.500 215.000 53.750 155,000 38,750 330.000 84,000 200,000 50.000 Total traceable expenses 1.132.500 208.750 2.252.7003 1.347 250 S 103.750 450,450 $ 420.000 290,000 $ 250,000 165.000 Common expenses not traceable to divisions Sared Expenses traceable to segments: Salaries Personnel costs 908,000 215.000 53,750 226,500 155,000 38,750 336,000 84,000 200,000 50,000 Total traceable expenses 1,132,500 268,750 2,252.700 $ 1,347,250 $ 193,750 450,450 $ 420,000 290,000 $ 250,000 165.000 Common expenses not traceable to divisions: Total common expenses 0 $ 2.252.700