Sheridan Equipment sells equipment to sports enthusiasts. Doug Sheridan, the companys president, just received the following income statement reporting the results of the past year.

		Baseball			Soccer		Basketball			Total
Sales revenue		$1,310,000			$3,750,000		$2,465,000			$7,525,000
Variable cost of goods sold		884,000			2,437,500		1,985,600			5,307,100
Fixed cost of goods sold		119,300			194,700		171,500			485,500
Gross profit		306,700			1,117,800		307,900			1,732,400
Variable operating expenses		176,800			600,000		246,500			1,023,300
Fixed operating expenses		82,200			87,500		75,900			245,600
Common fixed costs		62,500			134,000		100,900			297,400
Operating income		($14,800)			$296,300		($115,400)			$166,100

Doug is concerned that two of the companys divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear.

(a)

Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).)

		Baseball		Soccer		Basketball		Total
select an income statement item Operating IncomeTraceable Fixed ExpensesSales RevenueContribution MarginSegment MarginCost of Goods SoldVariable ExpensesCommon Fixed ExpensesOperating Expenses		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select between addition and deduction LessAdd:select an opening name for section one Segment MarginTraceable Fixed ExpensesCost of Goods SoldOperating ExpensesVariable ExpensesSales RevenueOperating IncomeContribution MarginCommon Fixed Expenses
select an income statement item Sales RevenueOperating IncomeContribution MarginOperating ExpensesSegment MarginTraceable Fixed ExpensesVariable ExpensesCost of Goods SoldCommon Fixed Expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item Contribution MarginOperating ExpensesCommon Fixed ExpensesSales RevenueSegment MarginVariable ExpensesCost of Goods SoldTraceable Fixed ExpensesOperating Income		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Contribution MarginCommon Fixed ExpensesOperating IncomeTraceable Fixed ExpensesCost of Goods SoldOperating ExpensesVariable ExpensesSales RevenueSegment Margin		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
select an opening name for section two Segment MarginOperating ExpensesVariable ExpensesContribution MarginOperating IncomeCost of Goods SoldTraceable Fixed ExpensesCommon Fixed ExpensesSales Revenue
select an income statement item Operating ExpensesSegment MarginVariable ExpensesContribution MarginTraceable Fixed ExpensesOperating IncomeCommon Fixed ExpensesSales RevenueCost of Goods Sold		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item Traceable Fixed ExpensesContribution MarginOperating ExpensesOperating IncomeVariable ExpensesCommon Fixed ExpensesCost of Goods SoldSales RevenueSegment Margin		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a summarizing line for the second part Contribution MarginOperating ExpensesTraceable Fixed ExpensesVariable ExpensesCommon Fixed ExpensesOperating IncomeSegment MarginSales RevenueCost of Goods Sold		$enter a total amount for the second part		$enter a total amount for the second part		$enter a total amount for the second part		enter a total amount for the second part
select an income statement item Variable ExpensesCommon Fixed ExpensesOperating IncomeCost of Goods SoldSegment MarginContribution MarginSales RevenueTraceable Fixed ExpensesOperating Expenses								enter a dollar amount
select a closing name for this statement Sales RevenueVariable ExpensesOperating IncomeCost of Goods SoldOperating ExpensesSegment MarginTraceable Fixed ExpensesContribution MarginCommon Fixed Expenses								$enter a total amount for this statement