A B C D E Polyester Nylon 1 Fibers Division Rope Division Fibers Division Total 2 Revenue $ 10,600,000 $ 6,725,000 8,650,000 $ 25,975,000 3 Less variable expenses 4 Cost of goods sold 5,543,000 2,368,000 4,414,000 12,325,000 5 Selling & administrative 1,334,000 649,000 890,000 2,873,000 6 Contribution margin 3,723,000 3,708,000 3,346,000 10,777,000 7 Less traceable fixed expenses 8 Cost of goods sold 1,685,000 1,382,000 2,208,000 5,275,000 9 Selling & administrative 236,000 174,000 273,000 683,000 10 Segment margin $ 1,802,000 $ 2,152,000 $ 865,000 4,819,000 11 Common fixed expenses 2,886,000 12 Net operating income $ 1,933,000