Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation....

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Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. Sales Variable cost of goods sold Direct fixed overhead Poinsettias Fruit Trees $970,000 460,000 160,000 $3,100,000 1,630,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Gorman Nurseries Inc. Segmented Income Statement For the Coming Year Poinsettias Sales Less variable expenses: Variable cost of goods sold Variable selling expense 970,000 Fruit Trees Total 3,100,000 4,070,000 460,000 1,630,000 2,090,000 38,800 124,000 162,800 471,200 1,346,000 1,817,200 Contribution margin Less direct fixed expenses: Direct fixed overhead 160,000 200,000 360,000 Common selling and administrative x 146,000 87,000 233,000 165,200 Segment margin 1,059,000 1,224,200 Less common fixed expenses: Direct fixed overhead x Direct selling and administrative Operating Loss x 800,000 450,000 25,800 x Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. Sales Variable cost of goods sold Direct fixed overhead Poinsettias Fruit Trees $970,000 460,000 160,000 $3,100,000 1,630,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Gorman Nurseries Inc. Segmented Income Statement For the Coming Year Poinsettias Sales Less variable expenses: Variable cost of goods sold Variable selling expense 970,000 Fruit Trees Total 3,100,000 4,070,000 460,000 1,630,000 2,090,000 38,800 124,000 162,800 471,200 1,346,000 1,817,200 Contribution margin Less direct fixed expenses: Direct fixed overhead 160,000 200,000 360,000 Common selling and administrative x 146,000 87,000 233,000 165,200 Segment margin 1,059,000 1,224,200 Less common fixed expenses: Direct fixed overhead x Direct selling and administrative Operating Loss x 800,000 450,000 25,800 x