Question: Question: How should I do conclusion for this report? The board of directors of the association has requested that you construct a segmented income statement
Question: How should I do conclusion for this report?
The board of directors of the association has requested that you construct a segmented income statement Question:
1.
Before we have a segmented income statement, first compute the company's revenues, occupancy costs, printing costs and mailing costs:
| Revenues: | |
| Membership dues (10,000 $60) | $600,000 |
| Assigned to the Journal (10,000 $15) | 150,000 |
| Assigned to Membership Service ($600,00 +$150,000) | $450,000 |
| Nonmember journal subscriptions (1,000 $20) | $20,000 |
| Advertising (given) | $50,000 |
| Books and reports (given) | $70,000 |
| Continuing education courses (given) | $230,000 |
| Occupancy costs: | |
| Membership Services ($100,000 0.3 + $20,000) | $50,000 |
| Journal ($100,000 0.1) | 10,000 |
| Books and Reports ($100,000 0.1) | 10,000 |
| Continuing Education ($100,000 0.2) | 20,000 |
| Central staff ($100,000 0.3) | 30,000 |
| Total occupancy costs | $120,000 |
| Printing costs: | |
| Journal (11,000 $4) | $44,000 |
| Books and Reports (given) | 25,000 |
| Continuing Education (plug) | 13,000 |
| Total printing costs | $82,000 |
| Mailing costs: | |
| Journal (11,000 $1) | $11,000 |
| Books and Reports (given) | 8,000 |
| Central staff (plug) | 5,000 |
| Total mailing costs | $24,000 |
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