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Niangua Co. is divided into three segments and is interested in preparing a segmented income statement in order to better understand the operating performance of

Niangua Co. is divided into three segments and is interested in preparing a segmented income statement in order to better understand the operating performance of each segment. Fixed expenses in each division currently include an allocation of general corporate expenses equal to 20% of the division's sales.

Division 1 Division 2 Division 3
Sales $ 320,000 $ 200,000 $ 280,000
Variable expenses 208,000 120,000 152,000
Contribution margin $ 112,000 $ 80,000 $ 128,000
Fixed expenses 80,000 88,000 72,000
Net income (loss) $ 32,000 $ (8,000 ) $ 56,000


(a.) Complete the following segmented income statement for Niangua Co.

Total Company Division 1 Division 2 Division 3
Sales
Variable expenses
Contribution margin
Direct fixed expenses
Segment margin
Common fixed expenses
Net income (loss)

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