Music Teachers, Incorporated, is an educational association for music teachers with 19,900 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 pbout recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professlonal education credit. The association's statement bf revenues and expenses for the current year is presented below. The board of directors of Music Teachers, Incorporated, wants a segmented income statement showing the contribution of each segment to the assoclation. The association has four divisions-Membership, Magazine Subscriptions, Books and Reports, and Continuing Education-and gathered the following data: The 19,900 members of the association pay dues of $100 per year, of which $20 covers a one-year 3. The 19,900 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 4,200 one-year subscriptions to Teachers' Forum were also sold last year to nonmembers and libraries at $38 per subscription. In addition to subscriptions, the journal generated $105,000 in advertising revenues. c. The costs to produce the Teachers' Forum magazine included $7 per subscription for printing and paper and $4 per subscription for postage and shipping. A total of 28,800 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. . The assoclation offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tultion cost of $75 each and were attended by 2,500 students. A total of 1,780 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 occupled by division follow: Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $201,000 in occupancy costs (which can be allocated to segments based on their square feet occupled) Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $201,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) 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. 9. 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 the administration of the association as a whole. The company's corporate staff does some mailing of materials for general administrative purposes. The expenses traced or assigned to the corporate staff, as well as any other expenses 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 segmented income statement for Music Teachers, Incorporated that shows the segment margin for each division as well as results for the association as a whole. \begin{tabular}{|c|c|c|c|c|c|c|} \hline Mombeship duans & 0 & 19,9000 & s 1,502,0000 & 360,0000 & & \\ \hline Non-momber magasion aubscriptons & 0 & 152,8000 & 33 & 150.0000 & & \\ \hline Advortining & 0 & 105,0000 & 2 & 105,0000 & & \\ \hline Heports and fents & 0 & 720,0000 & & & 720,0000 & \\ \hline & 2 & 1 & & +2 & & \\ \hline Continuing odscaten ecursent & 0 & 410.0000 & & & a & 410,0000 \\ \hline Total revenses & 4 & 1,414,500 & 1,502,000 & 602,600 & 720,000 & 410,000 \\ \hline \multicolumn{7}{|l|}{ Expenaes traseablo to segrourts: } \\ \hline Salurios: & 0 & 8640000 & 210,0000 & 155.0000 & 316,0000 & 190000 \\ \hline Pensonvel costs & 0 & 221,0000 & 54.7500 & 38,7800 & ,0000 & 48,5000 \\ \hline Oocupancy cons & 0 & 148,0008 & 44,4000 & 14.5000 & 14,8000 & 20,6000 \\ \hline Reimbunemort of frember costa bo iscal chapten & 0 & 560,0000 & 560.0000 & +1 & & \\ \hline Oeher murnbeship swiven & 0 & 6300000 & 530,0000 & & +4 & \\ \hline Printing and pape & 0 & 345,0000 & & 100,7000 & 115.2000 & 61,1000 \\ \hline Ponkape acd whoping & 0 & & & r & 40 & - \\ \hline instructon' fees & 0 & 7 & & 2= & - & \\ \hline & 35 & 30 & & +2 & +1 & \\ \hline Total tracsubie uxpenaes & & 2.530,000 & 1,409,150 & 377.250 & 625,000 & 393200 \\ \hline Quvson sognert margin(oss) & 0 & (1.27,500 & 103150 & 265,250 & s. 186,000 & Te.600 \\ \hline \\ \hline Seinies-cuporaie stan & 0 & & & & & \\ \hline Pursongicous & 0 & & & & & \\ \hline Setupang couss & 0 & & & & & \\ \hline Hestape and vhopigy & 0 & & & & & \\ \hline Generid and adirinitiotive & 0 & & & & & \\ \hline & & & 33 & 40 & & \\ \hline \end{tabular}