2,3

2. Indy Co. sells two products: Product AA and BB. Data concerning the company for July is as follows: Product AA Product BB Sales $200,000 $300,000 Variable Expenses $40,000 $100,000 Traceable Fixed Expenses $ 60,000 $150,000 In addition, common fixed expenses of $75,000 were incurred in July. What is the segment margin for Product AA? Answ [10 points] 3. Orchard Company has two major business segments Apple and Peach. In May the Apple segment had sales revenues of $340,000, variable expenses of $150,000, and traceable fixed expenses of $45,000 During the same month, the Peach segment had sales revenues of $980,000, variable expenses of $472,000, and traceable fixed expenses of $169,000. The common fixed expenses totaled $246,000. Constructed a segmented income statement in Contribution Format form to show segment margins, as well as net operating income of the Orchard Corporation. [30 points)