ssued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association's statement of revenues and expenses for the current year is presented below. The board of directors of Music Teachers, Incorporated, wants a segmented income statement showing the contribution of each segment to the assoclation. The association has four divisions - Membership, Magazine Subscriptions, Books and Reports, and Continuing Education-and gathered the following data: a. The 19,600 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers Forum. Other benefits include membership in the association and chapter affitiation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division. b. A total of 2,700 one-year subscriptions to Toachers'. Forum were also sold last year to nonmembers and libraries at $40 per subscription. In addition to subscriptions, the journal generated $110,000 in odvertising revenues. c. The costs to produce the Teachers' Forum magazine included \$8 per subscription for printing and paper and $4 per subscription for postage and shipping. d. A total of 28,900 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping e. The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tuition cost of $75 each and were attended by 2,400 students. A total of 1,900 students took two-day courses at a tuition cost of $125 for each student, Outside instructors were paid to teach some courses. 1. Salary costs and space occupied by division follow: Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staft. The $227,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) includes $59.000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avolded if the division were eliminated 9. Printing and poper costs other than for magazine subscriptions and for books and reports relate to the Continuling Education Oivision. h. General and administrative expenses include costs relating to the administration of the association as a whole. The companys corporate staff does some mailing of materials for general administrative purposes. The expenses traced or assigned to the corporate staff, as well os any other expenses not traceable to the segments, wil be The expenses vaced or assigned to the corporate stal, a distinguish between variable and frod costs. Personnel costs are 25% of salaries in the separate divisions as well as for the corporate statt The $227,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) includes $59,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated. 9. Printing and paper costs other than for magazine subscriptions and for books and feports relate to the Continuing Education Division. h. Genetal and administrative expenses include costs relating to the administration of the association as a whole. The companys corporate staff does some maling of materials for general administrative purposes. The expenses traced or assigned to the corporate staff, as well as any other expenses not traceable to the segments, wal be treated as common costs. it is not necessary to distinguish between variable ond fired costs. Required: 1. Prepare a segmented income statement for Music Foschers, Incorporaned that shows the segment margin for each division as wet as results for the association as a whole. 1. Prepare a segmented income statement for Music Teachers, Incorporated that shows the segment margin for each division as well as results for the association as a whole
