i cannot figure out the solution for case 6-30 service organization; segment reporting L06-4

  Music Teachers Inc. Statement of Revenues and Expenses For the Year Ended November 30 Revenues $3,275,000 Expenses:    Salaries 920,000   Personnel cost 230,000   Occupancy costs  280,000   Reimbursement of member costs to local chapters 600,000   Other membership services  500,000   Printing and paper  320,000   Postage and shipping  176,000   Instructors' fees 80,000   General and administrative 38,000 Total expenses 3,144,000 Excess of revenues over expenses $131,000 Salaries Space Occupied Membership $210,000 2,000 Magazine Subscriptions 150,000 2,000 Books and Reports 300,000 3,000 Continuing Education  180,0002,000Corporate staff  80,0001,000Total  $920,00010,000 Music Teachers, Inc.  Contribution format Segmented Income StatementTotal CompanyMembership DivisionMagazine Subscriptions DivisionBooks and Reports Division  Continuing Education DivisionSales  $3,275,000.00 Less variable expenses   Variable cost of goods sold    Variable selling & administrative expenses Total variable expenses           Contribution margin Traceable fixed expenses (Less )           Divisional segment margin         Common fixed expenses not traceable to individual divisions           Net operating income   a. Membership dues $100.00 to cover a one-year subscription to the associations journal  $20.00 dues to cover the magazine subscription; assign to Magazine Subscription Division $20.00 b. One Year subscritipion to Teachers, sold to non members and libraries @ $30 per subscription 2,500 sold last year magazine generated $100,00 in adverstisin revenues cost per magazine subcription were $7 for printing and paper and $4 postage and shipping c.  28,000 technical repors and professional text were sold by books and reports divisnion at an avg unit selling price of $25 Avg cost per publicatin were $4 for printing and paper and $2 for postage and shipping d. one day course had a tuition cost of $75 each, were attended by 2,400 students.  1,7600 students took two-day courses at a tuition cost of $125 for each student.  e.  Salary cost and space occupied by division as follow:  Salaries Space Occupied (square feet) Memebership $210,000 2,000 Magazine Subscriptions 150,000 Books and Reports 300,000 Continuing Education  180,000 Corporate staff 80,000 Total  $920,000 Personnel cost are 25% of salaries in the separate divisions as well as the corporate staff. $280,000 in occupancy cost include $50,000 in rental cost for warehouse used by Books and Reports Division for storage purposes f.  Printing and paper costs othere than for magazine sub and books and reports relate to the Continuing Education Divison g. General and administrative expenses include costs relating to overall administration of the general admistrative purposes.  The expenses that can be traced or assinged to the corp staff, as well as any other expenses that are not traceabte to the segments, will be treated as common cost.  It is not necessary to distinguish between variable and fixed costs.   1.  Prepare a constribution format segmented income statement for Music Teachers, Inc.  This statement should show the segment margin for each division as well as results for the association as a whole.  2.  Give arguments for and against allocating all cost of the association to the four divisions.