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 associations 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 associations 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
Revenues	$	3,407,600
Expenses:
Salaries		986,000
Personnel costs		235,000
Occupancy costs		297,000
Reimbursement of member costs to local chapters		520,000
Other membership services		510,000
Printing and paper		334,000
Postage and shipping		242,000
Instructors fees		79,000
General and administrative		37,000
Total expenses		3,240,000
Excess of revenues over expenses	$	167,600

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 $100 per year, of which $20 is considered to cover a one-year subscription to the associations 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 $38 per subscription. A total of 3,700 of these subscriptions were sold last year. In addition to subscriptions, the magazine generated $107,000 in advertising revenues. The costs per magazine subscription were $8 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 $4 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 2,600 students. A total of 1,880 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:

	Salaries		Space Occupied (square feet)
Membership	$	219,000	3,000
Magazine Subscriptions		154,000	1,000
Books and Reports		334,000	1,000
Continuing Education		195,000	2,000
Corporate staff		84,000	3,000
Total	$	986,000	10,000

Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $297,000 in occupancy costs includes $57,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes.

f.	Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division.
g.	General and administrative expenses include costs relating to overall administration of the association as a whole. The companys 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.

Required:

1.	Prepare a contribution format segmented income statement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole.

Total Membership Subscriptions Reports Education Sales: Membership dues Non-member magazine subscriptions Advertising Reports and texts Continuing education courses $ 2,020,0001,616,000404,000 140,600 107,000 140,600 107,000 710,000 430,000 710,000 430,000 Total revenues 3,407,600 1,616,000 651,600 710,000 430,000 Expenses traceable to segments 902,000 225,500 Salaries Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees 219,000 54,750 72,000 520,000 510,000 154,000 38,500 24,000 334,000 83,500 81,000 195,000 48,750 48,000 520,000 510,000 334,000 113,600 2,491,500 1,375,750 216,500 612,100 291,750 97,900$ 138,250 Total traceable expenses ivision segment margin 916,100$ 240,250$ 435,100$ Common expenses not traceable to divisions Salaries-corporate staff Personnel costs Occupancy costs Postage and shipping General and administrative 84,000 37,000 Total common expenses 121,000 $795,100