Segmented Income Statement Knitline Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. Sweaters Jackets Sales $210,000 $450,000 Variable cost of goods sold 145,000 196,000 Direct fixed overhead 25,000 47,000 A sales commission of 5% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $20,000 for the sweater line and $50,000 for the jacket line. Common fixed overhead for the factory was estimated to be $45,000. Common selling and administrative expense was estimated to be $15,000. Required: Prepare a segmented income statement for Knitline for the coming year, using variable costing. Enter all amounts as positive numbers. Knitline Inc. Segmented Income Statement For the Coming Year Sweaters Jackets Total $ $ $ Less variable expenses: Contribution margin $ $ $ Less direct fixed expenses: Segment margin $ $ $ Less common fixed expenses: $ 2. CONCEPTUAL CONNECTION Suppose that next year, all revenues and costs are expected to remain the same except for direct fixed overhead expense, which will go up by $10,000 for one of the product lines due to costs related to new equipment. Does it matter which line (sweaters or jackets) requires the new equipment