The Carlsbad Corporation produces and markets two types of electronic calculators: Model 4A and Model 5A. The following data weregathered on activities during the third quarter:Sales in unitsSales price per unitVariable production costs per unitTraceable fixed production costsVariable selling expenses per unitTraceable fixed selling expensesAllocated portion of corporate expensesSalesVariable expensesContribution marginTraceable fixed production costsTraceable fixed expensesSegment marginCommon fixed expensesNet operating income (loss)Required:Prepare a segmented income statement for last quarter. The statement should provide sufficient detail to allow the company toevaluate the performance of the manager of each product line.X Answer is complete but not entirely correct.Model4A876,000240,000 X636,000$$Model 4A6,000$ 146$ 40$ 210,000$20$ 15,000$ 136,000$TotalCompany1,926,000485,000 X1,441,000520,00035,000886,000276,000610,000$ 210,00015,000$ 411,000Model 5A1,050,000245,000 X805,000Model 5A$ 310,00020,000$ 475,0003,500$ 300$ 70$ 310,000$ 22$ 20,000$ 140,000

The traceable fixed costs are deducted from the contribution margin to get the segment margin. The…

Answered: The Carlsbad Corporation produces and…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 12PC

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Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) FANNING COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost Items for Segment A Effect on income $ Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. A $ 169,000 (123,000) (20,000) 26,000 (37,000) (5,000) $ (16,000) 0 B $242,000 (92,000) (32,000) 118,000 (35,000) (19,000) $ 64,000 с $ 262,000…
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