Fog City Retail operates a retail store in Mississauga, Oakville, and Burlington. The following information relates to the Mississauga facility:
▪ The store sold 65,000 units at $18.00 each, after having purchased the units from various suppliers for $12.50. Mississauga salespeople are paid a 5% commission based on gross sales dollars.
▪ Mississauga's sales manager oversees the placement of local advertising contracts, which totalled $54,000 for the year. Local property taxes amounted to $14,500.
▪ The sales manager's $65,000 salary is set by Mississauga's store manager. In contrast, the store manager's $134,000 salary is determined by Fog City's vice president.
▪ Mississauga incurred $6,800 of other noncontrollable costs along with $10,000 of income tax expense.
▪ Nontraceable (common) corporate overhead totalled $68,000.
▪ Fog City's corporate headquarters is located in Burlington, and the company uses responsibility accounting to evaluate performance.
Required:
Prepare a segmented income statement for the Mississauga store, being sure to disclose the segment contribution margin, the segment profit margin, and net income.

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The Answer of Fog City Retail operates a retail store in Mississauga, Oakville, and Burlington. The following information relates to the Mississauga facility:
▪ The store sold 65,000 units at $18.00 each, after having purchased the units from various suppliers for $12.50. Mississauga salespeople are paid a 5% commission based on gross sales dollars.
▪ Mississauga's sales manager oversees the placement of local advertising contracts, which totalled $54,000 for the year. Local property taxes amounted to $14,500.
▪ The sales manager's $65,000 salary is set by Mississauga's store manager. In contrast, the store manager's $134,000 salary is determined by Fog City's vice president.
▪ Mississauga incurred $6,800 of other noncontrollable costs along with $10,000 of income tax expense.
▪ Nontraceable (common) corporate overhead totalled $68,000.
▪ Fog City's corporate headquarters is located in Burlington, and the company uses responsibility accounting to evaluate performance.
Required:
Prepare a segmented income statement for the Mississauga store, being sure to disclose the segment contribution margin, the segment profit margin, and net income.

Fog City Retail Operates a Retail Store in Mississauga, Oakville