ACFI-350 MANAGERIAL ACCOUNTING EXCEL ASSIGNMENT Professor C. Donchess A contribution format income statement for the most recent year for Big Bear Consumer Electronics Inc. is shown below. Total Department AM/FM radios HD radios $320,000 | 100% | | $270,000 | 100% | 80%| 100% sso,0001 20,000| Sales Less variable expenses Contribution Margin Less Traceable 236,000| 84,000 | 15.000 | 69,000 74%| | 216,000| 60% 26% S% 22 a 54,00020%30,000 10.000 | 4% | 5.000 | 10% Fixed Expenses segmen t Marginl | Less Common $44 000 10th S25 000 501 40,000 | 13% Fixed Expenses Net Operating Income PROBLEM BACKGROUND: Shortly after graduating with a business degree from Bridgewater State University, you are hired as an assistant to the District Manager of a national consumer electronics chain. During your first day on the job, you attend a meeting regarding product lines carried by the chain. You learn about a fairly new innovation called HD (high definition) radio. This product allows consumers to listen to not only traditional AM and FM bands, but also to the newly created HD frequencies that most local radio stations are broadcasting free of charge to listeners on adjacent frequencies that previously were unused. Unlike satellite radio, this service requires no subscription charges. Consumers who have heard HD radio tell you that AM-HD broadcasts sound like FM and FM-HD broadcasts sound like CD quality! Due to improved manufacturing technologies, the cost to manufacture HD radios has dropped dramatically