Acct 505 Quiz 3

1.

(TCO D) Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below:

Sales revenues, Fibers | $870,000 |

Sales revenues, Feedstocks | $820,000 |

Variable expenses, Fibers | $426,000 |

Variable expenses, Feedstocks | $344,000 |

Traceable fixed expenses, Fibers | $148,000 |

Traceable fixed expenses, Feedstocks | S156,000 |

Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment and $185,000 to the Feedstocks business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. 

#1. Fibers Feedstock Total

Sales Revenue 870,000 820,000 1,690,000

Less: Variable expenses 426,000 344,000 770,000

Contribution margin

444,000 476,000 920,000

Fixed Cost:

Less traceable 148,000 156,000 304,000

Less common fixed expenses 129,000 185,000 314,000

Total Fixed Cost 277,000 341,000 618,000

Net operating income 167,000 135,000 302,000

2. (TCO D) Wryski Corporation had net operating income of $150,000 and average...