Question

Segmented Income Statement Kanata Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation filowing information was provided for the coming year Poinsettias Fruit Trees Sales $ 960,000 $2,960,000 Variable cost of goods sold 460,000 1,630,000 Direct fixed overhead 160,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia ine and $87,000 for the fruit tree line Common fixed overhead for the nursery Operation was estimated to be $300,000, common selling and administrative expense was estimated to be $450,000 Required: Prepare a segmented income statement for Kanata Nurseries for the coming year, using variable costing. If a value needs to be deducted, remember to include a negative (-) sign. Kanata Nurseries the Segmented Income Statement For the Coming Year Points Frut Tree Tota Les variable expenses Les directed expens 000 000 On On O in In D

Answer 1

Total 3,920,000 Kanata Nurseries Inc. Segmented Income Statement For the Coming Year | Poinsettias Fruit Trees Sales $ 960,000 $ 2,960,000 $ Less variable expenses: Variable cost of goods sold 460,000 $ 1,630,000$ Variable selling expense (4%* Sales) $ 38,400 $ 118,400 $ Contribution margin 461,600 $ 1,211,600 $ Less direct fixed expenses: Direct fixed overhead $ 160,000 $ 200,000 $ Direct selling and administrative $ 146,000$ 87,000 $ Segment margin $ 155,600 $ 924,600 $ Less common fixed expenses: Common fixed overhead $ Common selling and administrative $ Operating loss $ 2,090,000 156,800 1,673,200 S 461 600 360,000 233,000 1,080,200 800,000 450,000 -169,800