A company manufactures and sells 2 products: Debit and Credit. The following data were from last months accounting records:

	Debit	Credit
Sales Revenue	$180,000	$190,000
Product Costs	$144,000	$132,000
Period Costs	$26,400	$28,000

Debits variable product costs consist of $45,000 of direct material, $24,000 of direct labor, and $36,000 of manufacturing overhead. The remainder of its product costs are traceable fixed manufacturing overhead. Debits period costs consist of $20,000 of sales commission paid as a percentage of sales revenue. The remainder of its period costs are allocated common fixed costs.

Credits variable cost percentage is 75%. Of its fixed costs, $11,000 are traceable. The remainder of its fixed costs are allocated common fixed costs.

Which of the following statements is incorrect?

A.

Debits total traceable costs equal $39,000.

B.

The companys operating income for the period equals $39,600.

C.

Credits contribution margin percentage for the period is 25%.

D.

If Debit was expected to generate a segment margin of $18,000, it fell short of managements expectations by $2,000.

E.

Credits performance should be judged on a segment margin of $36,500.