Question - Segment Income Statements
Nutty Co. Gourmet Snacks has two divisions: Gift Baskets and Packaged Snacks. For first quarter 2018, Gift Baskets had a revenue of $1,125,000 and Packaged Snacks had a revenue of $750,000. Fixed costs were $160,000 for Gift Baskets and $105,000 for Packaged Snacks. Variable costs were $201,450 for Gift Baskets and $185,750 for Packaged Snacks. There were $65,000 of common expenses.
The Gift Baskets division makes three levels of baskets: Basic, Moderate, and Deluxe. Information for each of the levels of baskets follows.
|
|
Basic
|
Moderate
|
Deluxe
|
|
Sales
|
30%
|
45%
|
25%
|
|
Direct fixed expenses
|
$85,000
|
$73,000
|
$52,000
|
Complete the following -
1. Prepare an income statement segmented by division for first quarter 2018.
2. Prepare an income statement segmented by product for the Gift Basket division.