Use the new numbers for salaries on the looseleaf

developments in the field. The association publishes books and reports and also spon&os pelo music teachers. The association's magazine, Teachers Forum. is issued monthly with features were The association offers a variety of continuing education courses to both members and nonmembers The one-day courses had a tuition cost of $75 each and were attended by 2,400 students. A lot of Monthly meetings are held by the Ical chapters to discuss recent developments on topics courses that quality for continuing professional education credit. The association's statement 1.760 students took two-day courses at a tuition cost of $125 for each student. Outside instructor Chapter 2 and expenses for the current year is presented below. Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 $3,275,000 Revenues.. Expenses: Salaries... Personnel costs... Occupancy costs........ Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees 920,000 230.000 280,000 600,000 500.000 320,000 176,000 80,000 38,000 h. General and administrative Total expenses .. 3,144,000 that bet Excess of revenues over expenses $ 131,000 Req: 1. 2 The board of directors of Music Teachers, Inc., has requested that a segmented income statemente prepared showing the contribution of each segment to the associatim. The association has four segments Membership Division, Magazine Subscriptions Division, Books Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsible preparing the segmented inom statement, and he has gathered the following data: a b. The 20.000 members of the association pay dues of $100 of which $20 covers a once subscription to the Teachers' Forem. Other benefits include mentorship in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to di Magazine Subscriptions Division A total of 2.500 one-year subscriptions to Teachers' Forum were also sold last year to nonmeter and libraries at $30 per subscription. In addition to subscriptions, the journal generated $1000 in advertising revenues. The costs to produec the Teachers' Forum magazine included 87 per subscription for printing cam A total of 28,000 technical reports and professional texts were sold by the Books and Reports Divisum at an average selling price per unit of $25. Average costs per publication were S4 for printing all paper and $2 for postage and shipping d. e. were paid to teach some courses. Membership space sccupied (Square feet 2000 ZOCO Salanes 20 poo Magazine subscaptions 200000 Books and Reports 350,000 Continuing Education 120,000 Comparate staff 10,000 Total blogjooo 3,000 3,000 I 1,000 To co o o Salary costs and space occupied by division follow: Variable Costing and Segment Reporting: Tools for Management est to ecent 1onal nues Salaries Space Occupied (square feet) Membership Magazine Subscriptions Books and Reports Continuing Education Corporate staff Total $210,000 150.000 300,000 180,000 80,000 2.000 2.000 3,000 2,000 1,000 $920.000 10.000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $280,000 in occupancy costs includes $50,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. & Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some mailing of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments will be treated as common costs. It is not necessary to distinguish between variable and fixed costs Required: 1. Prepare a segmented income sensement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole. 2. Give arguments for and against allocating all costs of the association to the four divisions. (CMA, adapted) developments in the field. The association publishes books and reports and also spon&os pelo music teachers. The association's magazine, Teachers Forum. is issued monthly with features were The association offers a variety of continuing education courses to both members and nonmembers The one-day courses had a tuition cost of $75 each and were attended by 2,400 students. A lot of Monthly meetings are held by the Ical chapters to discuss recent developments on topics courses that quality for continuing professional education credit. The association's statement 1.760 students took two-day courses at a tuition cost of $125 for each student. Outside instructor Chapter 2 and expenses for the current year is presented below. Music Teachers, Inc. Statement of Revenues and Expenses For the Year Ended November 30 $3,275,000 Revenues.. Expenses: Salaries... Personnel costs... Occupancy costs........ Reimbursement of member costs to local chapters Other membership services Printing and paper Postage and shipping Instructors' fees 920,000 230.000 280,000 600,000 500.000 320,000 176,000 80,000 38,000 h. General and administrative Total expenses .. 3,144,000 that bet Excess of revenues over expenses $ 131,000 Req: 1. 2 The board of directors of Music Teachers, Inc., has requested that a segmented income statemente prepared showing the contribution of each segment to the associatim. The association has four segments Membership Division, Magazine Subscriptions Division, Books Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsible preparing the segmented inom statement, and he has gathered the following data: a b. The 20.000 members of the association pay dues of $100 of which $20 covers a once subscription to the Teachers' Forem. Other benefits include mentorship in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to di Magazine Subscriptions Division A total of 2.500 one-year subscriptions to Teachers' Forum were also sold last year to nonmeter and libraries at $30 per subscription. In addition to subscriptions, the journal generated $1000 in advertising revenues. The costs to produec the Teachers' Forum magazine included 87 per subscription for printing cam A total of 28,000 technical reports and professional texts were sold by the Books and Reports Divisum at an average selling price per unit of $25. Average costs per publication were S4 for printing all paper and $2 for postage and shipping d. e. were paid to teach some courses. Membership space sccupied (Square feet 2000 ZOCO Salanes 20 poo Magazine subscaptions 200000 Books and Reports 350,000 Continuing Education 120,000 Comparate staff 10,000 Total blogjooo 3,000 3,000 I 1,000 To co o o Salary costs and space occupied by division follow: Variable Costing and Segment Reporting: Tools for Management est to ecent 1onal nues Salaries Space Occupied (square feet) Membership Magazine Subscriptions Books and Reports Continuing Education Corporate staff Total $210,000 150.000 300,000 180,000 80,000 2.000 2.000 3,000 2,000 1,000 $920.000 10.000 Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $280,000 in occupancy costs includes $50,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. & Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division. General and administrative expenses include costs relating to overall administration of the association as a whole. The company's corporate staff does some mailing of materials for general administrative purposes. The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments will be treated as common costs. It is not necessary to distinguish between variable and fixed costs Required: 1. Prepare a segmented income sensement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole. 2. Give arguments for and against allocating all costs of the association to the four divisions. (CMA, adapted)