UURHIStIon; Segment Reporting LO6-4 association for music teachers that has 20,000 members. operates from a central headquarters but has local membership chapters through- Music Teachers, Inc., is an educational The association out the United States. Monthly meetings are held by the local chape ments on topics of interest to music issued monthly with features about recent books and reports and also sponsors professiona ers to discuss recent develop teachers. The association's magazine, Teachers Forum, is developments in the field. The association publishes I courses that qualify for continuing professional revenues and expenses for the current year is pre- education credit. The association's statement of r sented below. Music Teachers, Inc Statement of Revenues and Expenses For the Year Ended November 30 $3,275,000 Expenses: Personnel costs Occupancy costs Reimbursement of member costs to local chapters Other membership services.. Printing and paper Postage and shipping.... Instructors' fees General and administrative. 920,000 230,000 280,000 600,000 500,000 320,000 176,000 80,000 38,000 Total expenses.. Excess of revenues over expenses. 3.144,000 $ 131.000 The board of directors of Music Teachers, Inc., has requested that a segmented income state- ment be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented income statement, and he has gathered the following data: a. The 20,000 members of the association pay dues of $100 per year, of which $20 covers a one- year subscription to the Teachers' Forum. Other benefits include membership in the associa- tion and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division. A total of 2,500 one-year subscriptions to Teachers' Forum were also sold last year to non- members and libraries at $30 per subscription. In addition to subscriptions, the journal gener- b. ated $100,000 in advertising revenues. and paper and $4 per subscription for postage and shipping. printing and paper and $2 for postage and shipping. The costs to produce the Teachers' Forum magazine included S7 per subscription for printing c. A total of 28,000 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for d. The association offers a variety of continuing education courses to both members and non- members. The one-day courses had a tuition cost of $75 each and were attended by 2,400 stu- dents. A total of 1,760 students took two-day courses at a tuition cost of $125 for each student. . Outside instructors were paid to teach some courses