Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results. Sales Variable costs (as a percentage of sales) Traceable fixed costs Hardware $ 600,000 40% $ 250,000 Software $ 730,000 45% $ 125,000 In addition, fixed costs common to both divisions amounted to $216,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.) > Answer is complete but not entirely correct. Software Services Division Dollars Percent of Sales Sales 100.00 $ 600,000 X % NICHOLAS TECHNOLOGIES Responsibility Income Statement For the Current Month Entire Company Hardware Services Division Percent of Percent of Dollars Dollars Sales Sales $ 100.00% 800,000 X 1,400,000 100.00% 660,000 X 47.00 480,000 60.00 X 740,000 53.00 % $ 320,000 40.00 % 400,000 X 29.00 X 250,000 31.00 X $ 340,000 24.00 % $ 70,000 9.00 % 300,000 X 21.00 $ 40,000 3.00 % * * 180,000 X $ 420,000 OOOOOOO Variable costs Contribution margin Fixed costs traceable to each division Divisional responsibility margin Common fixed costs Income from operations 44 A 30.00 X 70.00 % 25.00 X 45.00 % 150,000 X $ 270,000 >