Bharat Curry Foods (BCF) prepares and sells frozen curry dinners. The company reported the following operating results for 20X1, in which there were no inventories of dinners at the beginning and end of the year:

BHARAT CURRY FOODSIncome StatementFor the Year Ended December 31, 20X1Sales........................................................................$1,560,000Cost of goods sold.......................................................900,000Gross margin...............................................................660,000

Selling and administrative expenses........................420,000Operating income.....................................................$ 240,000

BCF sells two types of curry foods?chicken and lamb?and operates in Ontario and western Canada. Information on sales and costs is as follows:

The following information is for lamb products only:

Required:

1. Prepare, in good form, an income statement segmented by product line, showing the corresponding company totals. Use Exhibit 12?3 as a guide.

2. Prepare, in good form, a segmented performance report for lamb curry dinners by region.

3. What inferences can you draw from the segmented performance report prepared above in part (2)? How can the manager get more insight into this?

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Total Chicken Lamb Regional sales percentage of national sales: 65% 37% 28% Ontario Western Canada 20 15 35 100% 57% Total 43% Costs as percentage of regional sales: 36.75% Variable production costs 46% Variable selling expenses 11.4% 12% Fixed costs by product: Traceable fixed expenses $75,000 $45,000 $120,000 Common fixed costs Remainder of total costs Western Canada Ontario Costs as percentage of regional lamb sales: Variable production costs 38% 34.42% Variable selling expenses 10.92% 14% Fixed costs by region: Traceable fixed expenses $20,000 $25,000 $45,000