Music Teachers, Inc., is an educational association for music teachers that has 19,700 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 journal, 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 beloww. Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 S3,287,000 Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors fees General and administrative 978,000 244,500 282,000 590,000 580,000 338,000 224,000 73,000 32,000 Total expenses 3,341,500 Excess of revenues over expenses S -54,500 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 prior to its preparation. a. Membership dues are S100 per year, of which S20 is considered to cover a one-year subscription to the association's journal. 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 Subscription Division b. One-year subscriptions to Teachers' Forum were sold to nonmembers and libraries at S30 per subscription. A total of 2,500 of these subscriptions were sold last year. In addition to subscriptions, the magazine generated S112,000 in advertising revenues. The costs per magazine subscription were S7 for printing and paper and $4 for postage and shipping c. A total of 28,400 technical reports and professional texts were sold by the Books and Reports Division at an average unit selling price of $25. Average costs per publication were S4 for printing and paper and $2 for postage and shipping d. 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 1,860 students took two-day courses at a tuition cost of $125 for each student. Outside instructors were paid to teach some courses. e. Salary costs and space occupied by division follow: ace Occupied Salaries (square feet) S 214,000 3,000 1,000 1,000 198,000 2,000 83,000 3.000 155,000 1, 328,000 1 Magazine S Books and Reports Corporate staff Total S 978,000 10,000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $282,000 in occupancy costs includes S57,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes