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Basic Segmented Income Statement

Basic Segmented Income Statement [LO1]

Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow:
Product
CD DVD
Selling price per pack $ 8.00 $ 25.00
Variable expenses per pack $ 3.20 $ 17.50
Traceable fixed expenses per year $ 138,000 $ 45,000
________________________________________
Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 37,500 CD packs and 18,000 DVD packs.

Required :
Prepare a contribution format income statement for the year segmented by product lines. (Omit the "$" sign in your response.)

CD DVD Total
Sales $
$
$

Variable expenses

Contribution margin

Traceable fixed expenses

Product line segment margin $
$

Common fixed expenses not traceable
to products

Net operating income $

________________________________________

Hint 1

________________________________________

Please see attached file.

Attachments

Solution Preview

Basic Segmented Income Statement [LO1]

Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow:
Product
CD DVD
Selling price per pack $ 8.00 $ 25.00
Variable expenses per ...

Solution Summary

Response discusses Basic Segmented Income Statement

$2.19