Darby Press publishes two lines of booksfiction and nonfiction. Cost and revenue data for each product line for the current month are as follows.

Problem 22.2A (Static) Preparing and Using Responsibility Income Statements (LO22-3, LO22-4, LO22- 5) Darby Press publishes two lines of booksfiction and nonfiction. Cost and revenue data for each product line for the current month are as follows. Sales Variable costs as a percentage of sales Fixed costs traceable to product lines Product Lines Fiction Nonfiction $ 800,000 $ 300,000 60% 20% $ 80,000 $ 125,000 In addition to the costs shown, the company incurs monthly fixed costs of $260,000 common to both product lines. Required: a. Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each product line and income from operations for the company as a whole. Also include columns showing all dollar amounts as percentages of sales. For the Current Month Entire Company Fiction Line Nonfiction Line Dollars Percent Dollars Percent Dollars Percent Sales 100 % % 100 % Variable costs % 20% $1,100,000 540,000 $ 560,000 205,000 $ 355,000 $ 300,000 60,000 $ 240,000 49 % 51 % 191% $ 800,000 480,000 $ 320,000 80,000 $ 240,000 Contribution margin Fixed costs traceable to product lines 0 % 80 % % 125,000 $ 115,000 42% 38 % 32 % 0 % % Income from operations $ 355,000 32%