The direct fixed expenses of pens, $10,000, and of pencils, $9,000, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments. Prepare income statements segmented by territory for September, including a column for the entire firm. Do not use negative signs with your answers. Script, Inc. Territory and Company Income Statements For the Month of September Florida Alabama Company Totals Sales: Pens $ 16,000 ~ $ 9,000 ~ $ 25,000 Pencils 8,000 22,000 30,000 Total sales 24,000 31,000 55,000 Variable costs: Pens 4,400 x 5,600 x 10,000 Pencils 5,200 x 6,800 x 12,000 Total 9,600 12,400 22,000 Contribution margin 14,400 18,600 33,000 Direct fixed expenses 8,800 x 10,200 x 19,000 x Territory margin $ 5,600 * $ 8,400 x 14,000 x Common fixed expenses: Pens 0 X Pencils 0 x Home office O X Total 0 x Net income $ 0 xIncome Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (10,000) (9,000) (19,000) Product margin $5,000 $9,000 $14,000 Less common fixed expenses (6,000) Net income $8,000 Pens and pencils are sold in two territories, Florida and Alabama, as follows: Florida Alabama Pen sales $16,000 $9,000 Pencil sales 8,000 22,000 Total sales $24,000 $31,000 The preceding common fixed expenses are traceable to each territory as follows: Florida fixed expenses $2,000 Alabama fixed expenses 3,000 Home office administration fixed expenses 1,000 Total common fixed expenses $6,000 The direct fixed expenses of pens, $10,000, and of pencils, $9,000, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments