Music Teachers, Incorporated, is an educational association for music teachers that has 20,500 members. The association operates from a central headquatters but has local membership chapters throughout the Uniled 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: Statesent of Revenues and Expenses For the Year Lnded Novener 30 Revenues Expenses: Salaries Personel costs Occupancy costs Reimburseneot of meaber costs to local chapters Other neabership services Printing and paper Postage and thipping Instructors' fees Geeeral and adeinistrative Total expenses Excess of reveoues over expenses $3,401,000 963,000 240,750 216,000 5,69,009 510,090 349,000 216, 800 70,000 33,000 33,0003,157,2503,243,256 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 yeat subscription to the leachers Forum. Other benefits include membership in the assoclation 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 3,000 one year subscriptions to Teachers' Forum were also sold last year to nonmembers and libraries at $36 per subscription. In addition to subscriptions, the journal generated $108,000 in advertising revenues. c. The costs to produce the Teachers' Forum magazine included $9 per subscription for printing and paper and $4 per subscription for postage and shipping. d. A total of 28,200 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 1,880 students took two-day courses at a fuition cost of $125 for each student. Outside instructors were paid to teach some courses. t. Salary costs and space occupied by division follow: Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staft. The $216,000 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. g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. h. Genetal 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. d. A total of 28,200 technical reports and protessional texts were sold by the Books and Reports Uivision 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 tultion 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. 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 $216,000 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 avolded 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 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 staft, as well as any other expenses that are not traceable to the segments, will be freated 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. This statement should show the segment margin for each division as well as results for the association as a whole