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DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last month's accounting records: Debit Credit Sales Revenue $180,000
DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last month's accounting records: Debit Credit Sales Revenue $180,000 $190,000 Product Costs $144,000 $132,000 Period Costs $26,400 $28,000 Debit's variable product costs consist of $45,000 of direct material, $24,000 of direct labor, and $36,000 of manufacturing overhead. The remainder of its product costs are traceable fixed manufacturing overhead. Debit's period costs consist of $20,000 of sales commission paid as a percentage of sales revenue. The remainder of its period costs are allocated common fixed costs. Credit's variable cost percentage is 75%. Of its fixed costs, $11,000 are traceable. The remainder of its fixed costs are allocated common fixed costs. Which of the following statements is incorrect? O A. Debit's total traceable costs equal $39,000. OB. The company's operating income for the period equals $39,600. OC. If Debit was expected to generate a segment margin of $18,000, it fell short of management's expectations by $2,000. OD. Credit's performance should be judged on a segment margin of $36,500. O E. Credit's contribution margin percentage for the period is 25%
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