Question
Airway Phones Inc. sells one type of home phone and one type of cellular phone. Revenue and cost information for the year ended February 28,
Airway Phones Inc. sells one type of home phone and one type of cellular phone. Revenue and cost information for the year ended February 28, 2019 relating to the products are presented below.
| Home Phones | Cell Phones | |
| Selling price per phone | $58 | $81 |
| Variable cost per phone | $34 | $31 |
| Traceable fixed costs | $144,000 | $100,000 |
The company incurs $169,000 in common fixed costs per year. Airway manufactured and sold 16,700 home phones and 31,600 cell phones. Prepare a segmented contribution margin statement for the year based on product line. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number.
| Airway Inc. Segmented Contribution Margin Statement For the Year Ended February 28, 2019 | |||
| Segment (Product Line) | |||
| Total | Home Phones | Cell Phones | |
| Sales | |||
| Less: Variable Costs | |||
| Contribution Margin | |||
| Less: Traceable Fixed Costs | |||
| Segment Margin | |||
| Less: Common Fixed Costs | |||
| Operating Income | |||
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McGraw-Hill Education SAT 2017
Authors: Christopher Black, Mark Anestis
1st Edition
1259641651, 978-1259641657
