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.
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