Carlsbad Corporation produces and markets two types of electronic calculators: Model 4A and Model 5A. The following data were gathered on activities during the third quarter:??Model 4AModel 5A?Sales in units5,0003,000?Sales price per unit$100$200?Variable production costs per unit$20$40?Traceable fixed production costs$200,000$300,000?Variable selling expenses per unit$10$12?Traceable fixed selling expenses$10,000$15,000?Allocated portion of corporate expenses$116,000$120,000Required:Prepare a segmented income statement for last quarter. The statement should provide sufficient detail to allow the company to evaluate the performance of the manager of each product line.
What will be an ideal response?
| ? | ? | Total Company | Model 4A | Model 5A |
| ? | Sales ($100 per unit × 5,000 units; $200 per unit × 3,000 units) | $1,100,000 | $500,000 | $600,000 |
| ? | Variable expenses ($30 per unit × 5,000 units; $52 per unit × 3,000 units) | 306,000 | 150,000 | 156,000 |
| ? | Contribution margin | 794,000 | 350,000 | 444,000 |
| ? | Traceable fixed production costs | 500,000 | 200,000 | 300,000 |
| ? | Traceable fixed selling expenses | 25,000 | 10,000 | 15,000 |
| ? | Segment margin | 269,000 | $140,000 | $129,000 |
| ? | Common fixed expenses | 236,000 | ? | ? |
| ? | Net operating income | $33,000 | ? | ? |
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