Problem 8-4

	Leather jackets			Suede jackets
Sales	450,000			542,000
Variable cost of goods sold	134,000			213,000
Direct fixed overhead	29,000			38,000

A sales commission of 2% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $32,000 for the leather jackets and $66,000 for the suede jackets. Common fixed overhead for the factory was estimated to be $83,000 and common selling and administrative expense was estimated to be $14,000.

Required:

Prepare a segmented income statement for Mario Co. for the coming year, using variable costing. Enter all amounts as positive numbers.

Mario Co.
Segmented Income Statement
For the Coming Year
	Leather Jackets	Suede Jackets	Total
Less direct fixed expenses:
Less common fixed expenses: