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Kraft Bowlen owns two sports franchisesthe Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for the coming year.

	Bladers	Ballers
Sales	$80,000,000	$180,000,000
Variable cost of goods sold	10,000,000	30,000,000
Direct fixed overhead	20,000,000	100,000,000

A sales commission of 5% of sales revenue is paid for each of the two sports franchises. Direct fixed selling and administrative expense was estimated to be $4,000,000 for the Bladers franchise and $10,000,000 for the Ballers franchise.

Common fixed overhead associated with owning the franchises was estimated to be $18,000,000; common selling and administrative expense was estimated to be $8,000,000.

Required:

Prepare a segmented income statement for Kraft Bowlen for the coming year, using variable costing.

Note: Enter all amounts as positive numbers except operating loss, if applicable.

Kraft Bowlen
Segmented Income Statement
For the Coming Year
	Bladers	Ballers	Total
	$	$	$
Less variable expenses:
Contribution margin	$	$	$
Less direct fixed expenses:
Segment margin	$	$	$
Less common fixed expenses:
			$

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