Errera Corporation Has Two Major Business Segments-Retail and Wholesale

question 152

Essay

Errera Corporation has two major business segments-Retail and Wholesale. In July, the Retail business segment had sales revenues of $100,000, variable expenses of $54,000, and traceable fixed expenses of $16,000. During the same month, the Wholesale business segment had sales revenues of $920,000, variable expenses of $386,000, and traceable fixed expenses of $156,000. Common fixed expenses totaled $269,000 and were allocated as follows: $156,000 to the Retail business segment and $113,000 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:

Confederate

In research, a person who is part of the experiment team but pretends to be a participant; historically, also refers to a supporter of the Confederate States of America.

Research Assistant

A person who assists in academic or private research, often involved in collecting, organizing, and analyzing data.

Ersatz-Participant

This seems to be a fabricated term that does not correspond to a widely recognized key term in the provided context. NO.

A Priori Causal Theories

Preexisting theories, acquired from culture or factors that are particularly prominent in conscious attention at the moment.