Writing, Inc., has two product lines. The September income statements of each product line and the company are as follows:

Writing, INC. Product Line and Company Income Statements For Month of September
	Pens	Pencils	Total
Sales	$ 45,000	$ 45,000	$ 90,000
Less variable expenses	(18,000)	(18,000)	(36,000)
Contribution margin	27,000	27,000	54,000
Less direct fixed expenses	(13,500)	(10,500)	(24,000)
Product margin	$ 13,500	$ 16,500	30,000
Less common fixed expenses			(9,000)
Net income			$ 21,000

Pens and pencils are sold in two territories, Vermont and Washington, as follows:

	Vermont	Washington
Pen sales	$ 27,000	$ 18,000
Pencil sales	13,500	31,500
Total sales	$ 40,500	$ 49,500

The common fixed expenses are traceable to each territory as follows:

Vermont fixed expenses	$ 3,000
Washington fixed expenses	4,500
Home office administration fixed expenses	1,500
Total common fixed expenses	$ 9,000

The direct fixed expenses of pens, $13,500, and of pencils, $10,500, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments.

Prepare income statements segmented by territory for September, including a column for the entire firm. Do not use negative signs with your answers.

Writing, Inc. Territory and Company Income Statements For the Month of September
	Vermont	Washington	Company Totals
Sales:
Pens	$Answer	$Answer	$Answer
Pencils	Answer	Answer	Answer
Total sales	Answer	Answer	Answer
Variable costs:
Pens	Answer	Answer	Answer
Pencils	Answer	Answer	Answer
Total	Answer	Answer	Answer
Contribution margin	Answer	Answer	Answer
Direct fixed expenses	Answer	Answer	Answer
Territory margin	$Answer	$Answer	Answer
Common fixed expenses:
Pens			Answer
Pencils			Answer
Home office			Answer
Total			Answer
Net income			$Answer

QUESTION 5 Tries remaining:1 Points out of 15.00 question Income Statements Segmented by Territory Writing, Inc., has two product lines. The September income statements of each product line and the company are as follows: Writing, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales Less variable expenses Contribution margin Less direct fixed Product margin Less common fixed expenses Net income 45,000 $45,000 $90,000 (18,000) (18,000) (36,000) 27,000 27,000 54,000 d expenses 13500) 10,500) (24,000) s13.500 $16,500 30,000 9,000) $ 21,000 Pens and pencils are sold in two territories, Vermont and Washington, as follows: Vermont Washington Pen sales 27,000 18,000 31,500 $49,500 Pencil sales 13,500 Total sales 40,500 The common fixed expenses are traceable to each territory as follows Vermont fixed expenses Washington fixed expenses Home office administration fixed expenses Total common fixed expenses $3,000 4,500 1,500 $9,000