2. Chap 6 - Variable Costing and Segment Reporting Car Tires Wheels Division Car Rims Sales $1,250,000 Less: Variable Expenses $650,000 Contribution Margin $600,000 Traceable FC $80,000 Product Line Margin $520,000 Common Costs Net Operating Income $520,000 Above is this months Income Statement for your car tire manufacturing business. Your company is planning on getting into the business of manufacturing and selling car rims as well. Given the information below, create a projected Income Statement for the car rim portion of the business and then for the Wheel Division Income Statement. Also, which product line would you rather manage if given a choice? Why? Sale price of rims: $600 each Expected unit sales: 900 Units Variable Cost/unit: $375 Traceable Fixed Cost to the Rim product line: $25,000 With the addition of the Car Rim product, there will be additional equipment needed and utilized by both product lines worth $65,000