Sunland Equipment sells equipment to sports enthusiasts. Doug Sunland, the companys president, just received the following income statement reporting the results of the past year.

		Baseball			Soccer		Basketball			Total
Sales revenue		$1,320,000			$3,780,000		$2,484,000			$7,584,000
Variable cost of goods sold		891,000			2,457,000		2,001,600			5,349,600
Fixed cost of goods sold		120,200			196,200		172,800			489,200
Gross profit		308,800			1,126,800		309,600			1,745,200
Variable operating expenses		178,200			604,800		248,400			1,031,400
Fixed operating expenses		82,800			88,200		76,500			247,500
Common fixed costs		63,000			135,000		101,700			299,700
Operating income		($15,200	)		$298,800		($117,000	)		$166,600

Doug is concerned that two of the companys divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear.

Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division.

Baseball Soccer Basketball Total Sales Revenue Traceable Fixed Expenses Operating Expenses Cost of Goods Sold Operating Income Variable Expenses Segment Margin Common Fixed Expenses Contribution Margin