Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: 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 and were allocated as follows: $106,000 to the Apparel business segment and $138,000 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company.

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

answer; functional fixedness;

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