Contribution Margin Income Statement (worth 5 points)

In addition to its award winning Pinot Noir, OBrien Vineyards introduced a Zinfandel in 2018.

	Pinot Noir	Zinfandel
Selling price per bottle	18.00	35.00
Variable expenses per bottle	6.40	19.50
Traceable fixed expenses per year	113,000	67,000

Common fixed expenses were $83,500. In 2012, OBrien Vineyards produced and sold 41,000 bottles of Pinot Noir and 22,000 bottles of Zinfandel. Based on the information above, prepare a Contribution Margin Income Statement for the year segmented by product.

	Total	Pinot Noir	Zinfandel
Sales
Variable Expenses
Contribution Margin
Traceable Fixed Expenses
Product Line Segment Margin
Common Fixed Expenses
Net Operating Income