Question

Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two...

Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results. Routers SwitchesSales$630,000 $780,000 Variable costs (as a percentage of sales) 40% 45%Traceable fixed costs$250,000 $125,000 In addition, fixed costs common to both product lines amounted to $216,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each product line. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Entire Company Routers line Ethernet Switches line
Dollar Percent Dollar Percent Dollar Percent
  Sales 1410000 100.00% 630000 100.00% 780000 100.00%
  Variable expenses 603000 42.77% 252000 40.00% 351000 45.00%
  Contribution margin 807000 57.23% 378000 60.00% 429000 55.00%
Fixed costs traceable to product lines 375000 26.60% 250000 39.68% 125000 16.03%
  Product Responsibility margin 432000 30.64% 128000 20.32% 304000 38.97%
  Common fixed costs 216000 15.32%
Income from operations 216000 15.32%
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two...
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results.    Routers Switches Sales $ 590,000 $ 830000 Variable costs (as a percentage of sales) 40 % 45 % Traceable fixed costs $ 250,000 $ 125,000    In addition, fixed costs common to both product lines amounted to $219,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for...
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two...
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results.    Routers Switches Sales $ 670,000 $ 740,000 Variable costs (as a percentage of sales) 40 % 45 % Traceable fixed costs $ 250,000 $ 125,000    In addition, fixed costs common to both product lines amounted to $215,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for...
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two...
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results. Routers(1st set of numbers for example the 610,000) Switches (2nd set of numbers for example the 870,000) Sales $610,000 $870,000 Variable costs (as a percentage of sales) 40% 45% Traceable fixed costs $250,000 $125,000 In addition, fixed costs common to both product lines amounted to $229,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude...
Exercise 22.5 Preparing a Responsibility Income Statement (LO22-1, LO22-2, LO22-3, LO22-4, LO22-5) Hepras, Inc., has two...
Exercise 22.5 Preparing a Responsibility Income Statement (LO22-1, LO22-2, LO22-3, LO22-4, LO22-5) Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results. Routers Switches Sales $ 900,000 $ 300,000 Variable costs (as a percentage of sales) 40 % 60 % Traceable fixed costs $ 200,000 $ 100,000    In addition, fixed costs common to both product lines amounted to $120,000. Prepare an income statement showing percentages as well...
Galley, Inc. manufactures two product lines, toasters and blenders. Below is the most recent contribution margin...
Galley, Inc. manufactures two product lines, toasters and blenders. Below is the most recent contribution margin segmented income statement prepared by Galley’s accountant, who allocated common fixed costs between the two segments based on sales revenue. Total    Toasters Blenders Sales $ 1,000,000 $ 450,000 $ 550,000 Variable costs 745,000 300,000 445,000 Contribution margin 255,000 150,000 105,000 Traceable fixed costs (80,000) (25,000) (55,000) Segment margin $175,000 $125,000 $50,000 Common fixed costs (40,000) (18,000) (22,000) Operating income (loss) $135,000 $107,000 $28,000...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (8,000) (6,000) (14,000) Product margin $7,000 $12,000 $19,000 Less common fixed expenses (6,000) Net income $13,000 Pens and pencils are sold...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (7,000) (6,000 (13,000) Product margin $8,000 $12,000 $20,000 Less common fixed expenses (6,000) Net income $14,000 Pens and pencils are sold...
Beautiful Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the...
Beautiful Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: ...................................................Total........................Luxury.........................Sporty Sales revenue..........................$490,000.................$360,000.....................$130,000 Variable expenses.....................359,000...................235,000.......................124,000 Contribution margin.................131,000...................125,000............................6000 Fixed expenses............................76,000.....................38,000..........................38,000 Operating income (loss)...........$55,000...................$87,000.......................-$32,000 Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? A) Decrease in total operating income of $6000 B) Decrease in total operating income of $131,000 C) Increase in total operating income of $49,000 D) Increase in total operating income of $130,000
3.Westfall Watches has two product lines: Luxury watches and Sporty watches. Assuming the Sporty line is...
3.Westfall Watches has two product lines: Luxury watches and Sporty watches. Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected given the following Income statement data? Total Luxury Sporty Sales revenue $490,000 $360,000 $130,000 Variable expenses 355,000 235,000 120,000 Contribution margin 135,000 125,000 10,000 Fixed expenses 76,000 38,000 38,000 Operating income...
Armor Sports, Inc. has two product lines—batting helmets and football helmets. The income statement data for...
Armor Sports, Inc. has two product lines—batting helmets and football helmets. The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $1,040,000 $700,000 $340,000 Variable costs (430,000) (150,000) (280,000) Contribution margin $610,000 $550,000 $60,000 Fixed costs (180,000) (90,000) (90,000) Operating income (loss) $430,000 $460,000 $(30,000) What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that there would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT