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
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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