Cazmir Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year.

A sales commission of 4 percent of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $ 50,000 for the sweater line and $ 23,000 for the jacket line. Common fixed overhead for the factory was estimated to be $ 63,000. Common selling and administrative expense was estimated to be $ 75,000.
Required:
Prepare a segmented income statement for Cazmir Inc. for the coming year, using variable costing.

Transcribed Image Text:

Sweaters Jackets Sales Variable cost of goods sold Direct fixed overhead $540,000 $470,000 297,000 175,000 124,000 40,000