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# Vogel Co: Income Statement, Contribution Margin, Revenue

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Fully formatted problem is available in the attachment.
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Vogel Co. produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model:

[TABLE]

Required:
(a) On what basis does the \$30,000 of company fixed expenses appear to be allocated?

(b) Calculate the effect on total company net income if the MV12 model were discontinued. (Omit the "\$" sign in your response.)
The net income would by \$

BV19 HV41 MV12
Contribution margin ratio % % %
________________________________________

(d) If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised?

(e) If an advertising campaign focusing on a single model were to result in an increase of \$15,000 in revenues, which model should be advertised?

#### Solution Summary

This solution illustrates how to determine the basis upon which company-wide fixed costs are allocated, computing the contribution margin ration, determining the effect on net income of discontinuing a product line and determining how to allocate advertising based upon its effect on different product lines.

\$2.19

## Analyze a Sociological Issue

For a project, you will write a 1,750- to 2,450-word paper examining the impact of a current social problem on a particular social group. You nned to choose a social problem and social group from the list below.

Suggested Social Problems and Social Groups List
Choose one combination of a social problem and a social group from the list below.

Social Inequality and Minorities in the United States

Gender Stratification and Women in Developing Nations

Poverty and Children in the United States

Fossil Fuel Dependency and Americans

Racial Profiling and Male African Americans

Ageism and the Elderly

Ethnocentrism and Immigrants in the United States

Modernization and Indigenous Cultures

Racial Discrimination and Hispanics in the United States

Make sure you have included at 3-5 sources from the approved Web sites. All in-text citations and references should be formatted according to APA guidelines

Population Reference Bureau at http://www.prb.org
U.S. Census Bureau at http://www.census.gov
World Population Information at http://www.census.gov/ipc/www/world.html
Population Connection at http://www.populationconnection.org
The World Factbook at http://www.cia.gov/cia/publications/factbook/index.html
Bureau of Labor Statistics at http://www.bls.gov