Problem

Segment reporting by division Roman Products Inc., has two divisions, Milan and Venice....

Segment reporting by division

Roman Products Inc., has two divisions, Milan and Venice. For the month ended March 31, Milan had sales and variable costs of $500,000 and $225,000, respectively, and Venice had sales and variable costs of $800,000 and $475,000, respectively. Milan had direct fixed production and administrative expenses of $60,000 and $35,000, respectively, and Venice had direct fixed production and administrative expenses of $80,000 and $45,000, respectively. Fixed costs that were common to both divisions and couldn’t be allocated to the divisions in any meaningful way were selling, $33,000, and administration, $27,000.

Prepare a segmented income statement by division for March.

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Solutions For Problems in Chapter 10