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

A sales commission of 5 percent of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $20,000 for the sweater line and $50,000 for the jacket line.
Common fixed overhead for the factory was estimated to be $45,000; common selling and administrative expense was estimated to be $15,000.

Required:
Prepare a segmented income statement for Trendy Inc. for the coming year, using variablecosting.

Transcribed Image Text:

Sweaters Sales Variable cost of goods sold Direct fixed overhead $300,000 180,000 25,000 Jackets $420,000 200,000 40,000