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

question 77

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:
$$\begin{array} { | l | r | r | } \hline & \text { North } & \text { South } \\\hline \text { Units produced and sold } & 40,000 & 50,000 \\\hline \text { Selling price per unit } & \$ 9 & \$ 16 \\\hline \text { Variable costs per unit } & 4 & 6 \\\hline \text { Direct fixed cost } & 148,000 & 220,000 \\\hline \text { Common fued cost } & 140,000 & 140,000 \\\hline\end{array}$$

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

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Definitions:

Restatements

Authoritative texts that aim to distill, clarify, and occasionally modernize the common law in the United States on various subjects.

American Law Institute

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Common Law

A body of legal principles derived from judicial decisions of courts and similar tribunals, as opposed to statutes or written legislation.

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