Birdy Sports Corporation (BSC) manufactures two styles of badminton racquets, Sportsman and Professional. The Sportsman racquet sells for $38 and the Professional sells for $110. The variable costs to produce and sell the racquets are $24 per racquet for the Sportsman and $50 per racquet for the Professional. BSC incurred total fixed expenses for the month of $210,000. Assume $45,000 of the fixed costs is traceable to the sportsman model while $95,000 is traceable to the Professional model. During the month 5,000 Sportsman racquets and 3,000 Professional racquets were produced and sold. BSC regards each style as a separate business segment.
Prepare a segmented income statement using the contribution margin format.

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The Answer of Birdy Sports Corporation (BSC) manufactures two styles of badminton racquets, Sportsman and Professional. The Sportsman racquet sells for $38 and the Professional sells for $110. The variable costs to produce and sell the racquets are $24 per racquet for the Sportsman and $50 per racquet for the Professional. BSC incurred total fixed expenses for the month of $210,000. Assume $45,000 of the fixed costs is traceable to the sportsman model while $95,000 is traceable to the Professional model. During the month 5,000 Sportsman racquets and 3,000 Professional racquets were produced and sold. BSC regards each style as a separate business segment.
Prepare a segmented income statement using the contribution margin format.

Birdy Sports Corporation (BSC) Manufactures Two Styles of Badminton Racquets