Exercise 15-18 (Static) Segmented income statement LO 8 Vogel Co produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: HV41 MV12 Selling price per unit Contribution margin per unit Units sold per month Total contribution margin Direct fixed expenses Segment margin Allocated company fixed expenses Operating income (loss) 1,667 Required: a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued c. Calculate the contribution margin ratio for each model d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D and E Calculate the effect on total company net income if the MV12 model were discontinued. The net income would decrease Exercise 15-18 (Static) Segmented income statement LO 8 25 points Vogel Co. produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model HV1 V12 20 $ Selling price per unit Contribution margin per unit Units sold per month Total contribution margin Direct fixed expenses Secent wagin Allocated company Fixed expenses Operating Income (loss) $12,000 $ 3,900 5(1.100) Required: a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued c. Calculate the contribution margin ratio for each model d. If an advertising campaign focusing on a single model were to result in an increase of 5.000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. Required A Required B Required and Calculate the contribution margin ratio for each model (Enter your answers as a percentage rounded to I decimal place 32.1)) UJV19 HV 41 V12 Contribution margin ratio Exercise 15-18 (Static) Segmented income statement LO 8 Vogel Co produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: HV41 MV12 Selling price per unit Contribution margin per unit Units sold per month Total contribution margin Direct fixed expenses Segment margin Allocated company fixed expenses Operating income (loss) 1,667 Required: a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued c. Calculate the contribution margin ratio for each model d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D and E Calculate the effect on total company net income if the MV12 model were discontinued. The net income would decrease Exercise 15-18 (Static) Segmented income statement LO 8 25 points Vogel Co. produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model HV1 V12 20 $ Selling price per unit Contribution margin per unit Units sold per month Total contribution margin Direct fixed expenses Secent wagin Allocated company Fixed expenses Operating Income (loss) $12,000 $ 3,900 5(1.100) Required: a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued c. Calculate the contribution margin ratio for each model d. If an advertising campaign focusing on a single model were to result in an increase of 5.000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. Required A Required B Required and Calculate the contribution margin ratio for each model (Enter your answers as a percentage rounded to I decimal place 32.1)) UJV19 HV 41 V12 Contribution margin ratio
