Question - Responsibility income statement-preparation
Gameland Village is segmented into two sales departments: software and video games. During April, these two departments reported the following operating results:
|
|
Software
|
Video Games
|
|
Sales
|
$400,000
|
$200,000
|
|
Variable Costs (as a percentage of sales)
|
65%
|
56%
|
|
Traceable fixed costs
|
$20,000
|
$16,000
|
In addition, fixed costs common to both departments amounted to $42,000.
Complete the following segmented income statement for Gameland Village. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company's income from operations.
|
GAMELAND VILLAGE
Income Statement by Product Lines
For the Month Ended April 30, 20__
|
Segments
|
|
Gameland Village
|
Software
|
Video Games
|
|
Dollars
|
|
%
|
Dollars
|
|
%
|
Dollars
|
|
%
|
|
Sales
|
$
|
|
|
$400,000
|
|
100
|
$200,000
|
|
100
|
|
Variable Costs
|
|
|
|
|
|
65
|
|
|
56
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|