There are 3 production segments (A, B & C) in the Company
the data for April is as follows:
Sales revenue for the three segment are 50,000, 70,000, 90,000 respectively
the variable cost for the three segment are 20,000, 30,000, 40,000 respectively
the traceable fixed cost for the three segment are 18,000, 20,000, 22,000 respectively
the common cost for the company is 42,000
prepare the income statement in the following cases:
1- the Common costs should not be allocated to segments.
2- the common costs should be allocated to segments based on the sales revenue of each segment