Cocino Company produces blenders and coffee makers. Over the past year, 100,000 blenders and 25,000 coffee makers were created and sold. Fixed costs for Cocino were $ 250,000, of which $ 90,000 could have been avoided if the blender was not produced and $ 45,000 could have been avoided if the brewing was not made. Income and expense information

the variables are as follows:

Coffee Maker Blender

Variable expense per unit $ 20 $ 43

Selling price per tool 22 45

Requested

1. Prepare product line income statement. Separate direct and general fixed costs.

2. What will the effect on Cocino's profit be if the coffee maker line is removed? Blender line?

3. What effect would the firm have on profits if 10,000 additional blenders could be produced (using existing capacity) and sold for $ 20.50 for a special order? Existing sales will not be affected by the special order