Question
Sunland Corporation provided the following income statement for two of its divisions: North and South. North South Total Revenue $ 109,000 $ 99,000 $ 208,000
Sunland Corporation provided the following income statement for two of its divisions: North and South.
| North | South | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $ | 109,000 | $ | 99,000 | $ | 208,000 | |||||
| Variable expenses | |||||||||||
| Product | 39,000 | 34,000 | 73,000 | ||||||||
| Selling and administrative | 34,000 | 27,000 | 61,000 | ||||||||
| Contribution margin | 36,000 | 38,000 | 74,000 | ||||||||
| Less fixed costs | 39,000 | 29,000 | 68,000 | ||||||||
| Operating income | $ | (3,000 | ) | $ | 9,000 | $ | 6,000 | ||||
The home office allocated common fixed costs of $37,000 to North and $21,000 to South. Prepare a segment margin income statement. Omit the heading. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) 
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
