PROBLEM #1: STEPS: Division 1 Division 2 Division 3 Total Company Common = split evenly / 3 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 $ 75000 $ 150 000 $ 275 000 $ 100 000 $ 125 000 $ 100 000 $ 325 000 $ 75 000 $ 50 000 $ 125 000 $ 250 000 $ 25 000 $ 75 000 $ (25 000) $ 75 000 Total Fixed Expenses Less Common Fixed Equals Direct Fixed $ - $ - $ - $ SOLUTION: General corporate (common) fixed expenses of $150,000 are currently split evenly between the three divisions. 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)