PROBLEM 6-26 Segmented Income Statements [LO4] Vega Foods, Inc., has recently purchased a small mill that it intends to operate as one of its sub- sidiaries. The newly acquired mill has three products that it offers for sale-wheat cereal, pancake mix, and flour. Each product sells for $10 per package. Materials, labor, and other variable produc- tion costs are $3.00 per bag of wheat cereal, $4.20 per bag of pancake mix, and $1.80 per bag of flour. Sales commissions are 10% of sales for any product. All other costs are fixed. The mill's income statement for the most recent month is given below: Product Line Total Company Cereal Whe at Pancake Mix Flour Expenses: 18,000 30,000 10,000 15,000 21,000 11,000 5,000 2,000 30,000 204,000 60,000 60,000 20,000 126,000 60,000 66,000 34,000 30,000 10,000 4,000 90,000 30,000 15,000 6,000 30,000 12,000