Music Teachers, Incorporated, is an educational association for music teachers that has $20,500$ 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.

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 $20,500$ 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 $4,000$ one$-$year subscriptions to Teachers' Forum were also sold last year to nonmembers and

libraries at $$30$ per subscription. In addition to subscriptions, the journal generated $$116,000$ 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 $29,000$ 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 $2,600$ 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: Personnel costs are $25\%$ of salaries in the separate divisions as well as for the corporate staff. The $$219,000$ in

occupancy costs $($which can be allocated to segments based on their square feet occupied$)$ includes $$55,000$

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.

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.

Required:

Prepare a segmented income statement for Music Teachers, Incorporated. This statement should show the

segment margin for each division as well as results for the association as a whole.