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Carla Vista Truff designs and manufactures a variety of personal products including wallets, purses, and key chains. Carla Vista is proposing to begin manufacturing smart
Carla Vista Truff designs and manufactures a variety of personal products including wallets, purses, and key chains. Carla Vista is proposing to begin manufacturing smart phone covers which sell for $35 each. Carla Vista estimates that monthly sales volume will be 10,500 units. Variable product costs will be $17.50 per unit and fixed overhead will be $7 per unit. Half of the fixed overhead is directly traceable to the smart phone cover line. To promote the covers, Carla Vista proposes a $1 per unit commission to the company's salespeople and a $9,500 per month advertising campaign. In compliance with corporate policy, the smart phone cover line will also be allocated $17,000 in fixed corporate support costs. Prepare a monthly income statement that highlights the proposed smart phone cover line's segment margin. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Carla Vista Truff Monthly Income Statement $ > Save for Later Attempts: 0 of 1 used Submit
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