Total Company R 3,850,000 1,870,000 1,980,000 Divisions cloth Leather R 2,200,000 R 1,650,000 1,050,000 320,000 1,150,000 830,000 Sales Variable expenses Contribution margin Traceable fixed expenses Advertising Selling and administrative Depreciation Total traceable Fixed expenses Divisional segment margin Common fixed expenses Operating income 692,000 526,000 242,000 1,465,000 515,000 199,000 R 116,000 390,000 300,000 174,000 814,000 336,000 302,000 226,000 123,00 651,000 179,000 R Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% 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 avallable on the product lines in the Leather Division: Leather Division Product Lines Garments Shoes Handbags R500,000 R800,000 R350,000 Sales Traceable Fixed expenses Advertising Selling and administrative Depreciation Variable expenses as percentage of sales R. 59.000 R 39,000 R 28,000 R121,000 R 44,000 * 65,000 40% R122,000 R 60,000 R$ 30,000 Sex Analysis shows that R83.000 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. Product Line Leather Division Garments Shoes Handbags R R R 0 0 O 0 Traceable food expenses Total traceable foxed expenses 0 OR 0 OR 0 OR 0 Common foxed expenses R D