Music Teachers, Incorporated

Statement of Revenues and Expenses

For the Year Ended November $30$

Revenues $ $3,366,100$

Expenses:

Salaries $972,000$

Personnel costs $243,000$

Occupancy costs $222,000$

Reimbursement of member costs to local chapters $510,000$

Other membership services $600,000$

Printing and paper $346,000$

Postage and shipping $159,000$

Instructors$$ fees $74,000$

General and administrative $30,000$

Total expenses $3,156,000$

Excess of revenues over expenses $ $210,100$

The board of directors of Music Teachers, Incorporated, wants a segmented income statement showing the contribution of each segment to the association. The association has four divisions$$Membership$,$ Magazine Subscriptions, Books and Reports, and Continuing Education$$and gathered the following data:

The $19,800$ 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.

A total of $3,600$ 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 $$119,000$ in advertising revenues.

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 $28,900$ 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 association offers a variety of continuing education courses to both members and nonmembers. The one$-$day courses had a tuition cost of $$75$ each and were attended by $2,400$ students. A total of $1,880$ students took two$-$day courses at a tuition cost of $$125$ for each student. Outside instructors were paid to teach some courses.

Salary costs and space occupied by division follow:

Salaries Space Occupied $($square feet$)$

Membership $ $222,0003,000$

Magazine Subscriptions $158,0001,000$

Books and Reports $310,0001,000$

Continuing Education $194,0002,000$

Corporate staff $88,0003,000$

Total $ $972,00010,000$