Reference no: EM132700338

Problem - Kraft Bowlen owns two sports franchises-the Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for the coming year. 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. Prepare a segmented income statement for Kraft Bowlen for the coming year, using variable costing.