Hal Marts, Inc., has two sales departments: equipment and clothing. During February, these two departments reported the following operating results:
Equipment Clothing
Sales $490,000 $250,000
Contribution Margin 35% 50%
Traceable Fixed Costs $29,200 $26,800
In addition, fixed costs common to both departments amounted to $54,400.
Complete the following responsibility income statement for Hal Marts, Inc. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company’s income from operations.
HAL MARTS, INC
Income Statement by Product Lines
For the Month Ended February 28, 20__
Segments
HAL Marts, Inc. Equipment Clothing
Dollars % Dollars % Dollars %
Sales $490,000 $250,000