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Segmented Income Statement Kraft Bowlen owns two sports franchises-the Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for

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Segmented Income Statement Kraft Bowlen owns two sports franchises-the Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for the coming year. Bladers Ballers Sales $80,000,000 $180,000,000 Variable cost of goods sold 10,000,000 30,000,000 Direct fixed overhead 20,000,000 100,000,000 A sales commission of 5% of sales revenue is paid for each of the two sports franchises. Direct fixed selling and administrative expense was estimated to be $4,000,000 for the Bladers franchise and $10,000,000 for the Ballers franchise Common fixed overhead associated with owning the franchises was estimated to be $18,000,000; common selling and administrative expense was estimated to be $8,000,000 Required: Prepare a segmented income statement for Kraft Bowlen for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Kraft Bowlen Segmented Income Statement For the Coming Year Bladers Ballers Total Sales 8,000,000,000 180,000,000 260,000,000 Less variable expenses: Variable cost of goods sold 10,000,000 30,000,000 40,000,000 Variable selling expense 40,000,000 90,000,000 1,300,000 Contribution margin 6,600,000 14,100,000 20,700,000 Less direct fixed expenses: Direct fixed overhead 20,000,000 10,000,000 12,000,000 and administrative expense was estimated to be $8,000,000. Required: Prepare a segmented income statement for Kraft Bowlen for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable. Kraft Bowlen Segmented Income Statement For the Coming Year Bladers Ballers Total Sales 8,000,000,000 180,000,000 260,000,000 Less variable expenses Variable cost of goods sold 10,000,000 30,000,000 40,000,000 Variable selling expense 40,000,000 90,000,000 1,300,000 Contribution margin 6,600,000 14,100,000 20,700,000 Less direct fixed expenses: Direct fixed overhead 20,000,000 10,000,000 12,000,000 Direct selling and administrative 40,000 Segment margin Less common fixed expenses: Common fixed overhead Common selling and administrative 80,000 Operating income 47,000,000

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