Could I have an expert solve this?
Pharaoh Corporation provided the following income statement for two of its divisions: East and West.
East $516,000
West $500,000
Total
Revenue Variable expenses $1,016,000
Product 376,000 86,000
266,000 642,000
Selling and administrative 94,000 180,000
Contribution margin 54,000 140,000
194,000
Less fixed costs 106,000 106,000
212,000
Operating income (52,000) $34,000 ($18,000)
The home office allocated common fixed costs of $104,000 to East and $38,000 to West.
Prepare a segment margin income statement. Omit the heading. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).)
East West Total
Revenue $516,000 $500,000 $1,016,000
Variable expenses
Product 376,000 266,000 642,000
Selling and administrative 86,000 94,000 180,000
Contribution margin 54,000 140,000 194,000
Less Traceable fixed costs 104,000 38,000 142,000
Segment margin $-50,000 $102,000 $52,000
Common fixed costs 70,000
Net operating income/loss $-18,000
