Question
DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last months accounting records: Debit/Credit Sales: Revenue $190,000 /$180,000
DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last months accounting records:
Debit/Credit Sales: Revenue $190,000 /$180,000 Product Costs: $144,000 /$132,000 Period Costs $28,000/$26,400
Debits product costs consists of $29,000 of traceable fixed costs. The remainder of its product costs are variable costs. Debits period costs consist of sales commission that equal 10% of its sales revenue. The remainder of its period costs are allocated common fixed costs.
Credits contribution margin percentage is 45%. Of its fixed costs, $6,700 are traceable. The remainder of its fixed costs are allocated common fixed costs.
Which of the following statements is incorrect?
A. If Debit was expected to generate a segment margin of $30,000, it fell short of managements expectations by $3,000.
B. The total common fixed costs are $35,700.
C. Credits performance should be judged on a segment margin of $74,300.
D. The companys operating income for the period equals $39,600
E. Debits total traceable costs equal $163,000.
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