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 Monthof September Pens Pencils Total Sales $ 30,000 $ 30,000 $ 60,000Less variable expenses (12,000) (12,000) (24,000) Contributionmargin 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 commonfixed expenses (6,000) Net income $ 14,000 Pens and pencils aresold in two territories, Florida and Alabama, as follows: FloridaAlabama Pen sales $ 18,000 $ 12,000 Pencil sales 9,000 21,000 Totalsales $ 27,000 $ 33,000 The common fixed expenses are traceable toeach territory as follows: Florida fixed expenses $ 2,000 Alabamafixed expenses 3,000 Home office administration fixed expenses1,000 Total common fixed expenses $ 6,000 The direct fixed expensesof pens, $9,000, and of pencils, $7,000, cannot be identified witheither territory. The company's accountants were unable to allocateany of the common fixed expenses to the various segments. Prepareincome statements segmented by territory for September, including acolumn for the entire firm. Do not use negative signs with youranswers. Script, Inc. Territory and Company Income Statements Forthe Month of September Florida Alabama Company Totals Sales: Pens $Answer $ Answer $ Answer Pencils Answer Answer Answer Total salesAnswer Answer Answer Variable costs: Pens Answer Answer AnswerPencils Answer Answer Answer Total Answer Answer AnswerContribution margin Answer Answer Answer Direct fixed expensesAnswer Answer Answer Territory margin $ Answer $ Answer AnswerCommon fixed expenses: Pens Answer Pencils Answer Home officeAnswer Total Answer Net income $ Answer
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 Monthof September Pens Pencils Total Sales $ 30,000 $ 30,000 $ 60,000Less variable expenses (12,000) (12,000) (24,000) Contributionmargin 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 commonfixed expenses (6,000) Net income $ 14,000 Pens and pencils aresold in two territories, Florida and Alabama, as follows: FloridaAlabama Pen sales $ 18,000 $ 12,000 Pencil sales 9,000 21,000 Totalsales $ 27,000 $ 33,000 The common fixed expenses are traceable toeach territory as follows: Florida fixed expenses $ 2,000 Alabamafixed expenses 3,000 Home office administration fixed expenses1,000 Total common fixed expenses $ 6,000 The direct fixed expensesof pens, $9,000, and of pencils, $7,000, cannot be identified witheither territory. The company's accountants were unable to allocateany of the common fixed expenses to the various segments. Prepareincome statements segmented by territory for September, including acolumn for the entire firm. Do not use negative signs with youranswers. Script, Inc. Territory and Company Income Statements Forthe Month of September Florida Alabama Company Totals Sales: Pens $Answer $ Answer $ Answer Pencils Answer Answer Answer Total salesAnswer Answer Answer Variable costs: Pens Answer Answer AnswerPencils Answer Answer Answer Total Answer Answer AnswerContribution margin Answer Answer Answer Direct fixed expensesAnswer Answer Answer Territory margin $ Answer $ Answer AnswerCommon fixed expenses: Pens Answer Pencils Answer Home officeAnswer Total Answer Net income $ Answer
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