Answer:
Spiess Corporation
Segmented Income Statement for December:
Apparel Accessories Total
Sales revenue $680,000 $805,000 $1,485,000
Variable expenses 380,000 442,000 822,000
Contribution $300,000 $363,000 $663,000
Traceable Fixed expenses 141,000 171,000 312,000
Common Fixed expenses 106,000 138,000 244,000
Total fixed expenses $247,000 $309,000 $556,000
Net Income $53,000 $54,000 $107,000
Explanation:
a) Data and Calculations:
Sales revenues, Apparel $ 680,000
Variable expenses, Apparel $ 380,000
Traceable fixed expenses, Apparel $ 141,000
Sales revenues, Accessories $ 805,000
Variable expenses, Accessories $ 442,000
Traceable fixed expenses, Accessories $ 171,000
Common fixed expenses totaled $244,000
Allocation of common fixed expenses:
Apparel $106,000
Accessories $138,000
