Music Teachers, Incorporated, is an educational association for music teachers that has 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 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, Incorporated Statement of Revenues and Expenses For the Year Ended November 30 Revenues Expenses: Salaries Personnel costs $3,356,000 543,000 Occupancy costs Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees General and administrative Total expenses Excess of revenues over expenses 235,750 231,000 510,000 510,000 320,000 177,000 72,000 36,000 3,034,750 $ 321,250 The board of directors of Music Teachers, Incorporated, 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 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 3,800 one-year subscriptions to Teachers Forum were also sold last year to nonmembers and libraries at $30 per subscription. In addition to subscriptions, the journal generated $117,000 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 28,800 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 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. f Salary costs and space occupied by division follow Hembership Magazine Subscriptions Books and Reports Continuing Education Salaries $213,000 157,000 302,000 Space Occupied (square feet) 3,000 1,000 1,000 2,000 3,000 10,000 Corporate staff Total 186,000 85,000 5943,000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $231,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) includes $58,000 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