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The income statement for a division of a large company follows: $K Sales$8,000 Variable costs $3,000 Contribution$5,000 Fixed costs $4,000 Profit$1,000 The fixed costs of

The income statement for a division of a large company follows:

$K

Sales$8,000

Variable costs$3,000

Contribution$5,000

Fixed costs$4,000

Profit$1,000

The fixed costs of $4,000 include an amount of $1,000 in the form of an allocation of costs incurred by the Corporate Centre.

Required:

Produce an income statement that better communicates the contribution of the division to corporate profit.

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