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Consider the following table and prepare a segmented income statement on paper. Use your income statement to answer the following questions: What is the contribution

Consider the following table and prepare a segmented income statement on paper. Use your income statement to answer the following questions: What is the contribution margin for Product B? What is the segment margin for Product B? What is the total segment margin? What is net income?

Product A Product B
Units sold 2500 3700
Selling price per unit $36 $18
Variable costs per unit $6 $7
Direct fixed costs per product line $3750 $2035
Allocated common fixed costs per product line $9000 $6600

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