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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

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.

The companys operating income for the period equals $39,600

B.

Debits total traceable costs equal $163,000.

C.

The total common fixed costs are $35,700.

D.

If Debit was expected to generate a segment margin of $30,000, it fell short of managements expectations by $3,000.

E.

Credits performance should be judged on a segment margin of $74,300.

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