Music Teachers, Incorporated, 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 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 $19,700$ members of the association pay dues of $$100$ per year, of which $$20$ covers a one$-$year substion to the

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 $$38$ per

subscription. In addition to subscriptions, the journal generated $$110,000$ 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 $28,600$ 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 $2,400$ 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.

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 $$51,000$ 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.