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Wildhorse Equipment sells equipment to sports enthusiasts. Doug Wildhorse, the companys president, just received the following income statement reporting the results of the past year.

Wildhorse Equipment sells equipment to sports enthusiasts. Doug Wildhorse, the companys president, just received the following income statement reporting the results of the past year.

Baseball

Soccer

Basketball

Total

Sales revenue

$1,230,000 $3,540,000 $2,332,000 $7,102,000

Variable cost of goods sold

835,000 2,301,000 1,873,600 5,009,600

Fixed cost of goods sold

113,000 184,200 162,400 459,600

Gross profit

282,000 1,054,800 296,000 1,632,800

Variable operating expenses

167,000 566,400 233,200 966,600

Fixed operating expenses

78,000 82,600 71,700 232,300

Common fixed costs

59,000 127,000 95,300 281,300

Operating income

($22,000) $278,800 ($104,200) $152,600

Doug is concerned that two of the companys divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear.

(a)

Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).)

Baseball

Soccer

Basketball

Total

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