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 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 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
  • Requirement asked

Contribution margin/ Segment margin Income Statement

Routers

Switches

Total Company

Sales

$590,000

100.00%

$830,000

100.00%

$1,420,000

100.00%

Variable cost

$236,000

40.00%

$373,500

45.00%

$609,500

42.92%

Contribution margin

$354,000

60.00%

$456,500

55.00%

$810,500

57.08%

Traceable fixed costs

$250,000

42.37%

$125,000

15.06%

$375,000

26.41%

Segment margin

$104,000

17.63%

$331,500

39.94%

$435,500

30.67%

Common Fixed cost

$219,000

15.42%

Income from business operations

$216,500

15.25%

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 $ 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 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...
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
Ace Company has two product lines. The following income statements are shown for its two product...
Ace Company has two product lines. The following income statements are shown for its two product lines and the company as a whole:       Office Supplies        Computer            Total Sales $250,000 $360,000 $610,000 Less: Variable expenses 100,000 252,000 352,000 Contribution margin $150,000 $108,000 $258,000 Less: Fixed expenses 70,000 120,000 190,000 Operating income $80,000 (12,000) $68,000 Additional information: Management estimates that the dropping of the Computer product line would result in a $50,000 (20%) decrease in sales in the Office Supplies product line....
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