Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below. R2.200.000 R 160.000 1.000.000 850 500 999.500 1.200.000 79.500 Corbin mare Advert dministration | 01100 340.000 211.000 1.000 221.000 116.000 200.000 700.000 700 500 R 11000 R 209.500 104.000 Derman Common feed experts Operating com 3000 Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines. The following information is available on the product lines in the Leather Division: La Dicon Production Sales Traceable expenses Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales RS40,000 R10,000 R30.000 R 64.000 R31000 R100.000 R900R000 R 40.000 R 22.000 60.000 14.000 Analysis shows that R108,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. Product Line Leather Handbag Traceable and expenses Commons R