32 4 points Hunt Retail rporation has two major business seg

32. (4 points) Hunt Retail rporation has two major business segments-Retail and Wholesale. In had sales revenues of $120,000, variable expenses of has e fixed expenses of $16,000. During the same month, the Wholesale business segment had sal traceable fixed expenses o allocated as follows: $150,000 to the Retail business segment and $110,000 to the Whol es revenues of $920,000, variable expenses of $386,000, and f $156,000. Common fixed expenses totaled $260,000 and were esale businesss egment. Required: Prepare a segmented income statement in the contribution format for the company.

Solution

Income statement Particulars Reatil Wholesale Total Sales            1,20,000         9,20,000          10,40,000 Minus: Variable costs                64,000         3,86,000            4,50,000 Contribution margin                56,000         5,34,000            5,90,000 Minus: Traceble fixed costs                16,000         1,56,000            1,72,000 Division net income                40,000         3,78,000            4,18,000 Minus: common fixed costs            2,60,000 Net income            1,58,000