Madeline Company Has Two Divisions: North and South

Essay

Madeline Company has two divisions: North and South. For 2017, North had revenues of $200,000 and South had $600,000. In the North Division, fixed expenses were $30,000 and variable expenses were $40,000. In the South Division, fixed expenses were $140,000 and variable expenses were $75,000. Common expenses were $45,000.
Prepare income statements for each division and the company in a format appropriate for segment reporting.