Sandhill Equipment sells equipment to sports enthusiasts. Doug Sandhill, the companys president, just received the following income statement reporting the results of the past year.

		Baseball			Soccer		Basketball			Total
Sales revenue		$1,340,000			$3,840,000		$2,522,000			$7,702,000
Variable cost of goods sold		905,000			2,496,000		2,033,600			5,434,600
Fixed cost of goods sold		122,000			199,200		175,400			496,600
Gross profit		313,000			1,144,800		313,000			1,770,800
Variable operating expenses		181,000			614,400		252,200			1,047,600
Fixed operating expenses		84,000			89,600		77,700			251,300
Common fixed costs		64,000			137,000		103,300			304,300
Operating income		($16,000)			$303,800		($120,200)			$167,600

Doug is concerned that two of the companys divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear.

(a)

Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).)

		Baseball		Soccer		Basketball		Total
select an income statement item Operating ExpensesCost of Goods SoldOperating IncomeSegment MarginContribution MarginTraceable Fixed ExpensesSales RevenueCommon Fixed ExpensesVariable Expenses		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select between addition and deduction LessAdd:select an opening name for section one Sales RevenueContribution MarginCommon Fixed ExpensesSegment MarginTraceable Fixed ExpensesOperating IncomeCost of Goods SoldVariable ExpensesOperating Expenses
select an income statement item Cost of Goods SoldSegment MarginContribution MarginVariable ExpensesOperating IncomeSales RevenueOperating ExpensesTraceable Fixed ExpensesCommon Fixed Expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item Variable ExpensesContribution MarginTraceable Fixed ExpensesSegment MarginCost of Goods SoldOperating IncomeOperating ExpensesSales RevenueCommon Fixed Expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Variable ExpensesTraceable Fixed ExpensesSegment MarginContribution MarginCommon Fixed ExpensesCost of Goods SoldOperating ExpensesSales RevenueOperating Income		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
select an opening name for section two Cost of Goods SoldCommon Fixed ExpensesTraceable Fixed ExpensesVariable ExpensesSales RevenueContribution MarginOperating IncomeSegment MarginOperating Expenses
select an income statement item Contribution MarginTraceable Fixed ExpensesCommon Fixed ExpensesSales RevenueOperating ExpensesCost of Goods SoldOperating IncomeSegment MarginVariable Expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item Operating ExpensesSegment MarginCost of Goods SoldSales RevenueOperating IncomeVariable ExpensesCommon Fixed ExpensesContribution MarginTraceable Fixed Expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a summarizing line for the second part Operating IncomeTraceable Fixed ExpensesSegment MarginOperating ExpensesCommon Fixed ExpensesContribution MarginSales RevenueCost of Goods SoldVariable Expenses		$enter a total amount for the second part		$enter a total amount for the second part		$enter a total amount for the second part		enter a total amount for the second part
select an income statement item Segment MarginSales RevenueCommon Fixed ExpensesCost of Goods SoldTraceable Fixed ExpensesOperating IncomeVariable ExpensesContribution MarginOperating Expenses								enter a dollar amount
select a closing name for this statement Contribution MarginSales RevenueCost of Goods SoldCommon Fixed ExpensesOperating ExpensesVariable ExpensesTraceable Fixed ExpensesOperating IncomeSegment Margin								$enter a total amount for this statement