Jane Baldwin, Anderson Flooring’s accounting intern, has prepared the following income statement for the month of June.
$ $ Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Residential 1,804,000 1,029,000 775,000 632,400 142,600 Commercial 3,125,300 2,523,000 602,300 615,800 (13,500) Total $ 4,929,300 3,552,000 1,377,300 1,248,200 $ 129,100 $ $ In preparing the income statement, Jane was unsure what to do with $42,000 in corporate fixed expenses that cannot be traced to a particular division. Since these costs were incurred to run the business as a whole, and she believed that each division benefited equally, she just allocated half to each division. (a) Prepare a segment margin income statement that highlights each division's contribution to corporate profits. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).) Residential Commercial Total