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Question - Responsibility income statement-preparation
Gameland Village is segmented into two sales departments: software and video games. During April, these two departments reported the following operating results:
Software
Video Games
Sales
$400,000
$200,000
Variable Costs (as a percentage of sales)
65%
56%
Traceable fixed costs
$20,000
$16,000
In addition, fixed costs common to both departments amounted to $42,000.
Complete the following segmented income statement for Gameland Village. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company's income from operations.
GAMELAND VILLAGE Income Statement by Product Lines For the Month Ended April 30, 20__
Segments
Gameland Village
Dollars
%
$
100
Variable Costs
65
56
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