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Problem D Allentown, Inc., is a company with two segments, X and Y. Its revenues and expenses for 1 answer below » Problem D Allentown, Inc., is a company with two segments, X and Y. Its revenues and expenses for 2009 follow: View complete question » S e g m e n t X S e g m e n t Y To t al Net sales $ 96,000 Problem D Allentown, Inc., is a company with two segments, X and Y. Its revenues and expenses for 2009 follow: S e g m e n t X S e g m e n t Y To t al Net sales $ 96,000 $ 144,000 $ 240,000 Direct expenses:* Cost of goods sold 45,000 99,000 144,000 Selling 13,680 7,200 20,880 Administrative: Uncollectible accounts 3,000 1,800 4,800 Insurance 2,400 1,200 3,600 Interest 480 240 720 Indirect expenses (all fixed): Selling 18,000 Administrative 25,200 * All the direct expenses are variable except insurance and interest, which are fixed. Prepare a schedule showing the contribution margin, the contribution to indirect expenses of each segment, and net income for the company as a whole. Do not allocate indirect expenses to the segments. Assume that indirect selling expenses are to be allocated on the basis of net sales and that indirect administrative expenses are to be allocated on the basis of direct administrative expenses. Prepare a statement (starting with the contribution to indirect expenses) that shows the net income of each segment. Comment on the appropriateness of the income amounts shown in parts (a) and (b) for determining the income contribution of the segments. View less » Aug 21 2015 06:48 PM
