Chocolatiers Company produces two products: Solid chocolate and powdered chocolate. Cost and

revenue data for each product line for the current month are as follows:

Product Lines

Solid Powdered

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $850,000 $870,000

Contribution margin as a percentage of sales . . . . . . . . . . . . . . . . . . 45% 55%

Fixed costs traceable to product lines . . . . . . . . . . . . . . . . . . . . . . . . $175,000 $250,000

In addition, fixed costs that are common to both product lines amount to $125,000.

Instructions

a. Prepare Chocolatiers