Fering Nurseries Inc. produces poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year.

A sales commission of 3 percent of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $127,000 for the poinsettia line and $78,000 for the fruit tree line.
Common fixed overhead for the nursery operation was estimated to be $1,475,000; common selling and administrative expense was estimated to be $380,000.

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

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Poinsettias Fruit Trees Sales Variable cost of goods sold Direct fixed overhead $1,200,000 3,000,000 1,000,000 200,000 400,000 260,000