Ch 15 Segment Margin Homework STEPS: PROBLEM #2: Division 1 Division 2 Division 3 Total Company Sales 10% of Sales = Common Sales Variable Expenses Contribution Margin Fixed Expenses Net income (loss) Division 1 Division 2 Division 3 Total Company $ 150 000 $ 200 000 $ 250 000 $ 600 000 $ 50 000 $ 75 000 $ 150 000 $ 275 000 $ 100 000 $ 125 000 $ 100 000 $ 325 000 $ 75 000 $ 50 000 $ 125 000 $ 250 000 $ 25000 $ 75000 $ (25000) $ 75000 Total Fixed Expenses Less Common Fixed Equals Direct Fixed SOLUTION: Fixed expenses in each division currently include an allocation of general corporate (common) expenses equal to 10% of the division's sales. Prepare a segmented income statement. Division 1 Division 2 Division 3 Total Company Sales Variable Expenses Contribution Margin Direct Fixed Expenses Segment Margin Common Fixed Expenses Net income (loss)