Question

Writing, Inc., has two product lines. The September incomestatements of each product line and the company are as follows:Writing, INC. Product Line and Company Income Statements For Monthof September Pens Pencils Total Sales $ 45,000 $ 45,000 $ 90,000Less variable expenses (18,000) (18,000) (36,000) Contributionmargin 27,000 27,000 54,000 Less direct fixed expenses (13,500)(10,500) (24,000) Product margin $ 13,500 $ 16,500 30,000 Lesscommon fixed expenses (9,000) Net income $ 21,000 Pens and pencilsare sold in two territories, Vermont and Washington, as follows:Vermont Washington Pen sales $ 27,000 $ 18,000 Pencil sales 13,50031,500 Total sales $ 40,500 $ 49,500 The common fixed expenses aretraceable to each territory as follows: Vermont fixed expenses $3,000 Washington fixed expenses 4,500 Home office administrationfixed expenses 1,500 Total common fixed expenses $ 9,000 The directfixed expenses of pens, $13,500, and of pencils, $10,500, cannot beidentified with either territory. The company's accountants wereunable to allocate any of the common fixed expenses to the varioussegments. Prepare income statements segmented by territory forSeptember, including a column for the entire firm. Do not usenegative signs with your answers. Writing, Inc. Territory andCompany Income Statements For the Month of September VermontWashington Company Totals Sales: Pens $Answer 0 $Answer 0 $Answer 0Pencils Answer 0 Answer 0 Answer 0 Total sales Answer 0 Answer 0Answer 0 Variable costs: Pens Answer 0 Answer 0 Answer 0 PencilsAnswer 0 Answer 0 Answer 0 Total Answer 0 Answer 0 Answer 0Contribution margin Answer 0 Answer 0 Answer 0 Direct fixedexpenses Answer 0 Answer 0 Answer 0 Territory margin $Answer 0$Answer 0 Answer 0 Common fixed expenses: Pens Answer 0 PencilsAnswer 0 Home office Answer 0 Total Answer 0 Net income $Answer0