Forth Corporation Has Two Major Business Segments-Retail and Wholesale

question 59

Essay

Forth Corporation has two major business segments-Retail and Wholesale. In March, the Retail business segment had sales revenues of $500,000, variable expenses of $245,000, and traceable fixed expenses of $90,000. During the same month, the Wholesale business segment had sales revenues of $240,000, variable expenses of $101,000, and traceable fixed expenses of $38,000. Common fixed expenses totaled $152,000 and were allocated as follows: $79,000 to the Retail business segment and $73,000 to the Wholesale business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

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Definitions:

Market Segment

A subgroup of a larger market, defined by distinct characteristics, needs, or behaviors, that is targeted with specific marketing efforts.

Accessible

The quality of being easy to approach, reach, enter, or use for people with disabilities or others.

Market Segments

Distinct groups of potential customers with similar needs, desires, and characteristics that a company targets with tailored marketing strategies.

Urban Fashions

Clothing styles that emerge from urban cultures and lifestyles, often reflecting the dynamic and diverse aspects of city life.