12 Question 5 Electric Company makes two types of motors, Hydro and Electro. The company's net income for 2009 was as follows: ELECTRIC COMPANY Income Statement year ended December 31, 2009 Sales Cost of goods sold Gross margin Selling and administrative expenses Net income $ 2,000,000 1.250,000 750,000 250,000 500,000 During 2009, sales of Hydro accounted for 60% of all product sales. In the eastern region, the sales of Hydro also amounted to 60% of the region's sales. The combined sales of both products in the eastern region represented 70% of the total sales of the company. The breakdown of the costs of each product as a percentage of that product's selling price was: Costs as a Percentage of Sales of the Product Hydro Variable production costs Variable selling expenses Traceable fixed costs Common fixed costs 25% 10% $ 75,000 Electro 20% 15% $100,000 Remainder of total costs Regionally, for the Hydro model, the breakdown of costs was as follows Regi onal Break down of Costs for ydro Eastern Western Variable production costs Variable selling expenses Traceable fixed costs Common fixed costs 25% 13% $30,000 25% 3% $25,000 Remainder of total costs Required a. Prepare, in good form, a contribution format income statement segmented by product line and the 6 company in total. b. Prepare, in good form, the income statement for the western region for the Hydro model