comment on the performance of each of the divisions 649699

OPERATING INCOME FOR SEGMENTS

Jerrell, Inc., manufactures and sells automotive tools through three divisions: Southwest, Midwest, and Northeast. Each division is evaluated as a profit center. Data for each division for last year are as follows (in thousands of dollars):

	Southwest	Midwest	Northeast
Sales	$2,300	$1,100	$3,500
Cost of goods sold	1,380	840	2,100
Selling and administrative expenses	300	180	620

Jerrell, Inc., had corporate administrative expenses equal to $250,000; these were not allocated to the divisions.

Required:

1. Prepare a segmented income statement for Jerrell, Inc., for last year.

2. Comment on the performance of each of the divisions.