Dickson Industries has two divisions: the North Division and the South Division. Information relating to the divisions for the year just ended is as follows:
$\begin{array}{lrr}
&\text { North}&\text { South}\
\text { Units produced and sold}&40,000&50,000\
\text { Selling price per unit}&\$9&\$16\
\text { Variable costs per unit } & 4 & 6 \
\text { Direct fixed cost } & 148,000& 220,000\
\text { Common fixed cost } & 140,000& 140,000
\end{array}$

Common fixed expenses have been allocated equally to each of the two divisions.
Required:
Prepare a segmented income statement for Dickson.

Question

Dickson Industries has two divisions: the North Division and the South Division. Information relating to the divisions for the year just ended is as follows:
 $\begin{array}{lrr}
&\text { North}&\text { South}\
\text { Units produced and sold}&40,000&50,000\
\text {  Selling price per unit}&\$9&\$16\
\text { Variable costs per unit } & 4 & 6 \
\text { Direct fixed cost } & 148,000& 220,000\
\text { Common fixed cost } & 140,000& 140,000
\end{array}$
 
Common fixed expenses have been allocated equally to each of the two divisions.
Required:
Prepare a segmented income statement for Dickson.

Quizplus · Accepted Answer

The Answer of Dickson Industries has two divisions: the North Division and the South Division. Information relating to the divisions for the year just ended is as follows:
 $\begin{array}{lrr}
&\text { North}&\text { South}\
\text { Units produced and sold}&40,000&50,000\
\text {  Selling price per unit}&\$9&\$16\
\text { Variable costs per unit } & 4 & 6 \
\text { Direct fixed cost } & 148,000& 220,000\
\text { Common fixed cost } & 140,000& 140,000
\end{array}$
 
Common fixed expenses have been allocated equally to each of the two divisions.
Required:
Prepare a segmented income statement for Dickson.

Dickson Industries Has Two Divisions: the North Division and the South