Product contribution for a merchandising firm The Delvin Pool Products Company sells a variety of chemicals, equipment, and recreational supplies for home swimming pools. The company purchases all of its products from wholesalers or factory representatives. Company management recently decided to separate operations into four divisions, Chemicals, Plumbing Equipment, Pool Cleaning Equipment, and Recreational Supplies. Division and product contribu- tion statements are prepared for all divisions.

The Pool Cleaning Equipment Division sells three products, the Whizzo, the Whammo, and the Whacco. They sell for $300, $200, and $120 respectively. The products cost Delvin $150, $120, and $75, respectively. Sales commissions are the only variable selling costs and are 10 percent of selling price. Variable administrative cost is $4 per unit for processing the sales order. Variable distribution costs include packaging, delivery, and set-up and are $25 per unit on the Whizzo, $20 on the Whammo, and $10 for the Whacco. Fixed marketing costs for the products are primarily product advertising costs which are $12,000 for the Whizzo, $6,000 for the Whammo, and $5,000 for the Whacco. All other fixed costs associated with the products are $4,000, $3,000, and $3,000, respectively. Sales for the year were 400 Whizzos, 800 Whammos, and 700 Whaccos. Divisional expenses not identifiable with specific products amount to $19,000.

REQUIRED Prepare a product contribution statement for the Pool Cleaning Equipment Division of The Delvin Pool Products Company.