Question 6 Partially correct Mark 0.03 out of 1.00 Flag question Income Statements Segmented by Territory Script, Inc, has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total 535,000 530 000 355.000 Les variable expenses 10.000112,000 22.000) Contribution margin 15,000 18.000 33,000 Less direct food expenses 7000116.000) (13000) Product margin - 58,000 $12,000 $20,000 Less common foed expenses 16.000) Net income 514,000 300 Pers and pencils are sold in two territories, Florida and Alabama as follows: Florida Alabama Pen sales $7,000 Pencils 6.000 24.000 Total sales 324000 51.000 21 The preceding common fed expenses are traceable to each territory as follows Florida Swed expenses Alabama ed expenses 3.000 Home once administration fed expenses 1000 Totalcommon feed expenses 1000 any of the common The direct fundepenses of pens 37,000, and of penal 6.000 bedented with the territory. The company a nts were unable to Pregate income statements segmented by territory of September, inding a column for the entirem. Do not use negative signs with your answers Script, Inc. Territory and Company Income Statements For the Month of September Ferda Alabama Company recals Sheet1 Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (7.000) (6,000) (13,000) Product margin $8,000 $12,000 $20,000 Less common fixed expenses (6,000) Net income $14,000 Pens and pencils are sold in two territories, Florida and Alabama, as follows: Florida Alabama Pen sales $18,000 $7,000 Pencil sales 6,000 24,000 Total sales $24,000 $31,000 The preceding common fixed expenses are traceable to each territory as follows: Florida foxed expenses $2.000 Alabama fixed expenses 3,000 Home office administration fixed expenses 1,000 Total common fixed expenses $6,000 The preceding common fixed expenses are traceable to each territory as follows: Florida fixed expenses $2.000 Alabama fixed expenses 3.000 Home office administration foxed expenses 1,000 Totalcommon foxed expenses $6,000 The direct fixed expenses of pens, 57,000, and of pencils, 56,000, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments. Prepare income statements segmented by territory for September, including a column for the entire firm. Do not use negative signs with your answers. Support Script, Inc. Territory and Company Income Statements For the Month of September Florida Alabama Company Totals Sales: Pens OX Pencils OX Total sales OX OM 0 Variable costs: OXS Pens Pencils Total Contribution margin Direct fixed expenses Territory margin Common foxed expenses pens pencils Home office OM Net income
