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Segmented Income Statement in the Contribution Format

The Winter Products Division of Dwayne Sports Corporation produces and markets two products for use in the snow: sleds and saucers. The following data were gathered on activities last month:

Sleds Saucers
Sales in units...................................................... 2,000 9,000
Selling price per unit........................................... $50 $20
Variable production costs per unit...................... $20 $5
Traceable fixed production costs........................ $12,000 $33,000
Variable selling expenses per unit...................... $2 $1
Traceable fixed selling expenses $2,000 $3,000
Allocated division administrative expenses $40,000 $72,000

Prepare a segmented income statement in the contribution format for last month.

Solution Preview

The Winter Products Division of Dwayne Sports Corporation produces and markets two products for use in the snow: sleds and saucers. The following data were gathered on activities last month:

Sleds Saucers Sleds Saucers
Sales in ...

Solution Summary

The solution discusses the segmented income statement in the contribution format.

$2.19