Indigo, Ltd., manufactures boats and personal watercraft. The company operates three separate divisions: yachts, sailboats, and jetskis. The company's latest income statement is presented by product line as follows:Sales revenueVariable cost of goods soldFixed cost of goods soldGross profitVariable operating expensesFixed operating expensesAllocated corporate costsOperating income(a)VVYachts$ 61,430,00031,051,000✓9,005,00021,374,0008,007,0004,021,0003,016,000Sailboats$ 22,820,00012,200,0005,010,000$5,610,0002,036,000$ 6,330,000 $ 1,034,000$1,510,0001,030,000YachtsJet Skis$ 6,442,0003,595,000701,0002,146,000853,000321,000111,028,000$ (56,000) $Total$ 90,692,000Prepare a segment margin income statement showing each of the three divisions. Fixed cost of goods sold and fixed operatingexpenses can be traced to each product line. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 orparenthesis, e.g. (5,125))$$46,846,00014,716,00029,130,00010,370,0005,372,000Sailboats6,080,0007,308,00011$$Jet SkisLUU

The profitability of a particular business segment within a company is known as segment margin, and…

Sales revenue Variable cost of goods sold Fixed cost of goods sold Gross profit Variable operating expenses Yachts $ 61,430,000 31,051,000 9,005,000 21,374,000 8,007,000 Sailboats Jet Skis $ 22,820,000 $6,442,000 12,200,000 5,010,000 5,610,000 1,510,000 3,595,000 701,000 2,146,000 853,000 Total $ 90,692,000 46,846,000 14,716,000 29,130,000 10,370,000

Sales revenue Variable cost of goods sold Fixed cost of goods sold Gross profit Variable operating expenses Yachts $ 61,430,000 31,051,000 9,005,000 21,374,000 8,007,000 Sailboats Jet Skis $ 22,820,000 $6,442,000 12,200,000 5,010,000 5,610,000 1,510,000 3,595,000 701,000 2,146,000 853,000 Total $ 90,692,000 46,846,000 14,716,000 29,130,000 10,370,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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