Barbecue Sauce	Barbecue Seasoning
Units produced and sold				20,000	25,000
Selling price per unit				$16	$8
Variable expenses per unit				$9	$3
Direct fixed expenses by product
Barbecue Sauce			$80,000
Barbecue Seasoning			$100,000
Common Fixed Expenses			$120,000

Barbecue Industries produces two products, Barbecue sauce and Barbecue seasoning. Information relating to the products for October is as follows:

Required:

1. Design a segmented income statement showing the 2 product costs and a company total column. The segmented income statement should be developed to assist management in the decision making of questions listed in 2-4 below.

Use only cell references for #1 to develop your numeric part of the segmented income statement.

Barbecue Industries
Segmented Income Statement
For the Month Ended October 31, 2018
Barbecue Sauce	Barbecue Seasoning	Barbecue Industries Total

2. What would be the dollar effect on the company's profit if Barbecue Sauce is dropped? Provide the overall change in income and the impact positive or negative on company income.

3. What would be the dollar effect on the company's profit if Barbecue Seasoning is dropped? Provide the overall change in income and the impact positive or negative on company income.

4. Would you recommend that Barbecue Industries drop Barbecue Sauce or Barbecue Seasoning? Why or why not?