Carlton Company has divided its business into segments based on sales territorie

Question

Carlton Company has divided its business into segments based on sales territories: East Coast, Midland, and West Coast. Following are financial data for 2018: EEB (Click the icon to view the financial data.) Prepare an income statement for Carlton Company for 2018 using the contribution margin format assuming total fxed costs for the company were $460,000. Include columns for each business segment and a column for the total company. Begin by preparing the contribution margin income statement for each segment, then for the total of the company. Carlton Company Contribution Margin Income Statement For the Year Ended December 31, 2018 East Coast Midland West Coast Total units Units Sold Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income unii units

Explanation / Answer

Contribution margin income statement :

East Coast Midland West coast Total Unit sold 74 units 65 units 57 units Net sales revenue 754800 851500 672600 2278900 Variable cost 520812 468325 376656 1365793 Contribution margin 233988 383175 295944 913107 Fixed cost 460000 Operating income 453107

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