Dickson Industries Has Two Divisions: the North Division and the South

question 142

Essay

Dickson Industries has two divisions: the North Division and the South Division. Information relating to the divisions for the year just ended is as follows:
$\begin{array}{lrr}&\text { North}&\text { South}\\\text { Units produced and sold}&40,000&50,000\\\text { Selling price per unit}&\$9&\$16\\\text { Variable costs per unit } & 4 & 6 \\\text { Direct fixed cost } & 148,000& 220,000\\\text { Common fixed cost } & 140,000& 140,000\end{array}$

Common fixed expenses have been allocated equally to each of the two divisions.
Required:
Prepare a segmented income statement for Dickson.

---

Definitions:

Core Principles

Fundamental beliefs or values that form the foundation for a system, organization, or individual's actions and decisions.

Professional Selling

The act of selling products or services by leveraging advanced sales techniques and relationships.

Personal Character

The set of moral and ethical qualities, values, and traits that define an individual's persona and influence their behavior and interactions.

Sales Puffery

Exaggerated or promotional statements made by a salesperson or in advertisements, which are not meant to be taken literally.