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

A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000.
Required:
Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing.

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Poinsettias Fruit Trees Sales $970,000 460,000 160.000 S3,100,000 1Go0 200,000 Direct fixed overhead