terms of the Brazil Sales Variable expens Contribution margin Traceable fixed expenses Advertising Selling and administrative Total Company R4,000,000 3,033,000 3,047,000 Divisions Cloth R2,400,000 Leather 1,500,000 1,070,000 963,000 1,335,000 717,000 650,000 410,000 240,000 540,000 320,000 228,000 Depreciation 261,000 126,000 135,000 Total traceable fixed expenses 3,459,000 956,000 403,000 Divisional segment margin Connon fixed expenses Operating incons 500,000 401,000 187,000 " 474,000 114,000 Top management can't understand why the Leather Division has such a low segment margin when its sales are only 30% 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: Sales Traceable fixed expenses Advertising selling and administrative Depreciation Variable expenses percentage of sales Leather Division Product Lines Garments R510,000 Showe 750,000 420,000 R. 61,000 84,000 95,000 R 41,000 44,000 70,000 30,000 67,000 30,000 70% 506 554 Analysis shows that R71,000 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. Leather Division Garments Product Line Shoes Handbags Sales 510,000 R 750 000 R 420.000 $10,000 750,000 420,000 Traceable fxed expenses Total traceable fixed expenses Common fixed expenses 510,000 R 750,000 R 420,000 R R $10,000 2. Management is surprised by the handbag product line's poor showing and would like to have the product line segmented by market. The following information is available about the markets in which the handbag line is sold Sales Traceable fixed expenses Advertising Variable expenses as a percentage of sales Handbag Markets Domestic 300,000 Tornign 120,000 $1,000 44,000 459 All of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which the product is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined as markets