Assume that Leisure Group prepared its segmented income statement as shown. Income Statement Leisure Group Group $800,000 Bar Restaurant Sales $100,000 $700,000 Variable Costs 310,000 60,000 250,000 см 490,000 40,000 450,000 Traceable FC 246,000 26,000 220,000 Segment Margin 244,000 14,000 230,000 Common Costs 200,000 Profit 44,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In line with the income statement, should the bar be eliminated?

Assume that Leisure Group prepared its segmented income statement as shown.
Income Statement
Leisure Group
Bar
Group
$800,000
Restaurant
Sales
$100,000
$700,000
Variable Costs
310,000
60,000
250,000
см
490,000
40,000
450,000
Traceable FC
246,000
26,000
220,000
Segment Margin
244,000
14,000
230,000
Common Costs
200,000
Profit
44,000
Transcribed Image Text:Assume that Leisure Group prepared its segmented income statement as shown. Income Statement Leisure Group Bar Group $800,000 Restaurant Sales $100,000 $700,000 Variable Costs 310,000 60,000 250,000 см 490,000 40,000 450,000 Traceable FC 246,000 26,000 220,000 Segment Margin 244,000 14,000 230,000 Common Costs 200,000 Profit 44,000
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