The winter products department of Canadian Tires produces and markets two products for use in the snow: Sleds and Saucers. The following data were gathered on activities last month:

Sleds

Saucers

Sales in units

2,000

9,000

Selling price per unit

$50

$20

Variable fixed production costs

$20

$5

Traceable fixed production costs

$12,000

$33,000

Variable selling expenses per unit

$2

$1

Traceable fixed selling expenses

$2,000

$3,000

Allocated division administrative expenses

$40,000

$72,000

Required:

a. Prepare a segmented income statement in the contribution format for last month, showing both "Amount" and "Percent" columns for the division as a whole and for each product.

b. Why might it be very difficult to calculate separate break-even sales for each product?