Principle of cost accounting 17th edition chapter 10 problem 10-5

Problem 10-5 Segmented Income Statement Mow-It Inc. manufactures two products, mowers and trimmers, which are sold in two territories designated by the company as East Territory and West Territory. The following income statement prepared for the company shows the product-line segments Mow-It Inc ncome Statement Total Mowers $1,000,000 $600,000 100% $400,000 100 Trimmers Sales ... 600,000 420,000 70 $ 400,000 $180,000 30% S220.000-55 Contribution margin.... Less direct fixed costs. Segment margin 200,000 50,000 s 200,000 $130,000 150.000 $ 70,000 600,000 420,00070 180,00045 80,000 45 150,00 Segment margin.... 200,000 $130000 120,000 $ 80,000 Net income . The territorial product sales are as follows: East West $400,000 $200,000 200,000 200,000 $800,000 $400,000 Mowers Trimmers Total The direct fixed costs of mowers ($50,000) and trimmers ($150,000) are not identifiable with either of the two territories. The common fixed costs are partially identifiable with East Territory West Territory, and the general administration as follows Total- The direct fixed costs of mowers ($50,000) and trimmers($150,000) are not identifiable with either of the two territories. The common fixed costs are partially identifiable with East Territory West Territory, and the general administration as follows: East Territory West Territory.. 54,000 36,000 30,000 Required: Hide Prepare a segmented income statement by territories. The direct fixed costs of the product lines segmented statement being prepared. Round your answers to one decimal place, if necessary Prepare a segmented income statement by territories. The direct fixed costs of the product lines segmented statement being prepared. Round your answers to one decimal place, if necessary Mow-It Inc. Income Statement by Territory East Territory East Te Total Sales Sales Less Variable Expenses Contribution Margin Direct Fixed Costs t Fixed Co Segment Margin s Common Fixed Expenses: Mowers Trimmers General Administration Total Net Income