A company manufactures and sells two produts. 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 directmaterial, $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.

Show evidence for each statement that either concludes it being either true or false.

1. Debits total traceable costs equal $39,000.

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

3. Credits contribution margin percentage for the period is 25%.

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

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