Author Question: Bethel Corporation provided the following income statement for two of its divisions: North and ... (Read 23 times)

petersan · **on:** Feb 5, 2023

Bethel Corporation provided the following income statement for two of its divisions: North and South.

North

South

Total

Revenue	$50,000	$40,000	$90,000
Variable expenses
Product	20,000	15,000	35,000
Selling and administrative	15,000	8,000	23,000
Contribution margin	15,000	17,000	32,000
Less fixed costs	20,000	10,000	30,000
Operating income	($ 5,000)	$ 7,000	$ 2,000

Required:

The home office allocated common fixed costs of $18,000 to North and $2,000 to South. Prepare a segment margin income statement. Omit the heading.

athenaheim · **Reply #1 on:** Feb 5, 2023

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