Fausnaught Corporation has two major business segments--Retail and Wholesale. In October, the Retail business segment had sales revenues of $730,000, variable expenses of $409,000, and traceable fixed expenses of $117,000. During the same month, the Wholesale business segment had sales revenues of $400,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. Common fixed expenses totaled $218,000 and were allocated as follows: $122,000 to the Retail business segment and $96,000 to the Wholesale business segment.Required:Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Question

Quizplus · Accepted Answer

The Answer of Fausnaught Corporation has two major business segments--Retail and Wholesale. In October, the Retail business segment had sales revenues of $730,000, variable expenses of $409,000, and traceable fixed expenses of $117,000. During the same month, the Wholesale business segment had sales revenues of $400,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. Common fixed expenses totaled $218,000 and were allocated as follows: $122,000 to the Retail business segment and $96,000 to the Wholesale business segment.Required:Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Fausnaught Corporation Has Two Major Business Segments--Retail and Wholesale