Question

Script, Inc., has two product lines. The September incomestatements of each product line and the company are as follows:

SCRIPT, INC. Product Line and Company Income Statements For Month of September
	Pens	Pencils	Total
Sales	$ 30,000	$ 30,000	$ 60,000
Less variable expenses	(12,000)	(12,000)	(24,000)
Contribution margin	18,000	18,000	36,000
Less direct fixed expenses	(9,000)	(7,000)	(16,000)
Product margin	$ 9,000	$ 11,000	20,000
Less common fixed expenses			(6,000)
Net income			$ 14,000

Pens and pencils are sold in two territories, Florida andAlabama, as follows:

	Florida	Alabama
Pen sales	$ 18,000	$ 12,000
Pencil sales	9,000	21,000
Total sales	$ 27,000	$ 33,000

The common fixed expenses are traceable to each territory asfollows:

Florida fixed expenses	$ 2,000
Alabama fixed expenses	3,000
Home office administration fixed expenses	1,000
Total common fixed expenses	$ 6,000

The direct fixed expenses of pens, $9,000, and of pencils,$7,000, cannot be identified with either territory. The company'saccountants were unable to allocate any of the common fixedexpenses to the various segments.

Prepare income statements segmented by territory for September,including a column for the entire firm. Do not use negativesigns with your answers.

Script, Inc. Territory and Company Income Statements For the Month of September
	Florida	Alabama	Company Totals
Sales:
Pens	$Answer	$Answer	$Answer
Pencils	Answer	Answer	Answer
Total sales	Answer	Answer	Answer
Variable costs:
Pens	Answer	Answer	Answer
Pencils	Answer	Answer	Answer
Total	Answer	Answer	Answer
Contribution margin	Answer	Answer	Answer
Direct fixed expenses	Answer	Answer	Answer
Territory margin	$Answer	$Answer	Answer
Common fixed expenses:
Pens			Answer
Pencils			Answer
Home office			Answer
Total			Answer
Net income			$Answer