Alard Company produces blenders and coffee makers. During the past year, the company produced and sold...

 

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Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and $142,500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follows: Selling price per appliance Variable expenses per appliance Required: Blenders $24 18 Coffee Makers $29 27 1. Prepare segmented income statements. Separate direct and common fixed costs. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Blenders Coffee Makers Total $ $ 2. What would the effect be on Alard's profit if the coffee maker line is dropped? The blender line? If the coffee maker line is dropped, profits will by $ the segment margin. If the blender line is dropped, profits will by $ 3. What would the effect be on firm profits if an additional 10,000 blenders could be produced (using existing capacity) and sold for $21.50 on a special-order basis? Existing sales would be unaffected by the special order. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Blenders Coffee Makers Total $ $ Contribution margin $ $ $ Segment margin Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and $142,500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follows: Selling price per appliance Variable expenses per appliance Required: Blenders $24 18 Coffee Makers $29 27 1. Prepare segmented income statements. Separate direct and common fixed costs. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Blenders Coffee Makers Total $ $ 2. What would the effect be on Alard's profit if the coffee maker line is dropped? The blender line? If the coffee maker line is dropped, profits will by $ the segment margin. If the blender line is dropped, profits will by $ 3. What would the effect be on firm profits if an additional 10,000 blenders could be produced (using existing capacity) and sold for $21.50 on a special-order basis? Existing sales would be unaffected by the special order. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Blenders Coffee Makers Total $ $ Contribution margin $ $ $ Segment margin