Homework Answers
Answer:
| Music Teachers Inc. | |||||
| Segmented Income Statement | |||||
| For the year ended November 30 | |||||
| Particulars |
Association Total ($) |
Membership ($) | Division Magazine Subscriptions ($) | Books & Reports ($) | Continuing Education ($) |
| Sales: | |||||
| Membership dues (Working note-1) | 20,10,000 | 16,08,000 | 4,02,000 | - | - |
|
Non-members Journal subscription (2,900 * $ 38) |
1,10,200 | - | 1,10,200 | - | - |
| Advertising | 1,19,000 | - | 1,19,000 | - | - |
| Reports and Texts (28,100 * $ 25) | 7,02,500 | - | - | 7,02,500 | - |
|
Continuing Education (2400* $75) + (1840* $125) |
4,10,000 | - | - | - | 4,10,000 |
| Total Revenue (a) | 33,51,700 | 16,08,000 | 6,31,200 | 7,02,500 | 4,10,000 |
| Expenses tracable to segment: | |||||
| Salaries (Working note-2) | 8,81,000 | 2,11,000 | 1,51,000 | 3,32,000 | 1,87,000 |
| Personnel Cost (Working note-2) | 2,20,250 | 52,750 | 37,750 | 83,000 | 46,750 |
| Occupancy cost (Working note-3) | 1,75,700 | 51,300 | 17,100 | 73,100 | 34,200 |
| Reimbursment of members cost to local | 5,90,000 | 5,90,000 | - | - | - |
| Other membership service | 5,10,000 | 5,10,000 | - | - | - |
| Printing and Paper (Working note-4) | 3,26,000 | - | 1,84,000 | 1,12,400 | 29,600 |
| Postage and Shipping (Working note-4) | 1,48,200 | - | 92,000 | 56,200 | - |
| Instructors Fee | 78,000 | - | - | - | 78,000 |
| Total Traceable expenses (b) | 29,29,150 | 14,15,050 | 4,81,850 | 6,56,700 | 3,75,550 |
| Division segment margin (c ) = (a) - (b) | 4,22,550 | 1,92,950 | 1,49,350 | 45,800 | 34,450 |
| Common expenses not tracable to segment: | Amount ($) | ||||
| Salaries - Corporate staff (working note-2) | 83,000 | ||||
| Personnel cost - Corporate staff (Working note-2) | 20,750 | ||||
| Occupancy cost - Corporate staff (Working note-3) | 51,300 | ||||
| Postage and Shipping - Corporate staff (Working note-4) | 61,800 | ||||
| General Administrative expense | 35,000 | ||||
| Common expenses not traceable to segment: (d) | 2,51,850 | ||||
| Excess of revenues over expense (Margin-untraceable expense) (e ) = (c )- (d) | 1,70,700 |
| Working Notes:- | |||
| 1. Revenue:- | |||
| Particulars | Membership ($) | Magazine ($) | Total |
| Total members | - | - | 20,100 |
| Per unit price | 80 | 20 | 100 |
| Total Revenue | 16,08,000 | 4,02,000 | 20,10,000 |
| 2. Salary and Personnel cost:- | ||
| Particulars | Salary | Personnel cost - 25% of salary |
| Membership | 2,11,000 | 52,750 |
| Magazine subscription | 1,51,000 | 37,750 |
| Books and Reports | 3,32,000 | 83,000 |
| Continuing Education | 1,87,000 | 46,750 |
| Corporate staff | 83,000 | 20,750 |
| Total | 9,64,000 | 2,41,000 |
| 3. Occupancy cost:- | ||||
| Particulars | Space | Allocation based on space ($227,000 - $56,000 = $ 171,000) | Direct allocation | Total |
| Membership | 3,000 | 51,300 | - | 51,300 |
| Magazine subscription | 1,000 | 17,100 | - | 17,100 |
| Books and Reports | 1,000 | 17,100 | 56,000 | 73,100 |
| Continuing Education | 2,000 | 34,200 | - | 34,200 |
| Corporate staff | 3,000 | 51,300 | - | 51,300 |
Case 6-30 Service Organization; Segment Reporting (L06-4) Music Teachers, Inc., is an educational association for music teachers that has 20,400 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers' Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also...
Case 6-30 Service Organization; Segment Reporting [LO6-4] Music Teachers, Inc., is an educational association for music teachers that has 19,700 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers' Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also...
Music Teachers, Inc., is an educational association for music teachers that has 19,800 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers' Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing...
Music Teachers, Inc., is an educational association for music
teachers that has 20,000 members. The association operates from a
central headquarters but has local membership chapters throughout
the United States. Monthly meetings are held by the local chapters
to discuss recent developments on topics of interest to music
teachers. The association’s magazine, Teachers’ Forum, is
issued monthly with features about recent developments in the
field. The association publishes books and reports and also
sponsors professional courses that qualify for continuing...
Music Teachers, Inc., is an educational association for music
teachers that has 20,300 members. The association operates from a
central headquarters but has local membership chapters throughout
the United States. Monthly meetings are held by the local chapters
to discuss recent developments on topics of interest to music
teachers. The association’s magazine, Teachers’ Forum, is
issued monthly with features about recent developments in the
field. The association publishes books and reports and also
sponsors professional courses that qualify for continuing...
Music Teachers, Inc., is an educational association for music
teachers that has 20,200 members. The association operates from a
central headquarters but has local membership chapters throughout
the United States. Monthly meetings are held by the local chapters
to discuss recent developments on topics of interest to music
teachers. The association’s magazine, Teachers’ Forum, is
issued monthly with features about recent developments in the
field. The association publishes books and reports and also
sponsors professional courses that qualify for continuing...
Music Teachers, Inc., is an educational association for music teachers that has 19,600 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers' Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing...
Music Teachers, Inc., is an educational association for music teachers that has 19,900 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association's magazine, Teachers Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing...
Music Teachers, Inc., is an educational association for music
teachers that has 20,300 members. The association operates from a
central headquarters but has local membership chapters throughout
the United States. Monthly meetings are held by the local chapters
to discuss recent developments on topics of interest to music
teachers. The association’s magazine, Teachers’ Forum, is
issued monthly with features about recent developments in the
field. The association publishes books and reports and also
sponsors professional courses that qualify for continuing...