Exercise 1 (10 marks) Knar Ltd. sells sporting equipment in three store locations and has the following income statement: 0 7 Sales 8 Variable expenses 9 Contribution margin 10 Fixed expenses 11 12 13 14 Operating loss In an effort to isolate the problem, the president has asked for an income statement segmented by store. The Accounting Department has provided the following: $1,500,000 882,000 618,000 650,000 $32,000 15 16 17 18 Sales 19 Variable expenses 20 Traceable fixed expenses Store Locations Mississauga Brampton Toronto $500,000 $350,000 $650,000 $350,000 $206,000 $326,000 $220,000 $130,000 $200,000 21 22 23 Required: 1. Prepare a contribution format income statement segmented by store location 4 Sales Total Company Variable expenses Contribution margin Instructions MC Exercise 1 Answer Sheet New... Mississauga Store Locations Brampton Toronto