Basic Segmented Income Statement
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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.
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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 ...
Purchase this Solution
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