Exercise 22.5 Preparing a Responsibility Income Statement (LO22-1, LO22-2, LO22-3, LO22-4, LO22-5) Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results Switches Routers $610,000 $960,000 Sales Variable costs (as a percentage of sales) 40% 45% $ 125,000 Traceable fixed costs $250,000 In addition, fixed costs common to both product lines amounted to $217,000. Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each product line. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.) HEPRAS INC. Responsibility Income Statement For the Current Month Entire Company Routers Line Ethernet Switches Line Percent of Sales Dollars Dollars Percent of Sales Dollars Percent of Sales Sales % % % Variable costs Contribution margin 0.00 % $ 0.00 % $ 0.00% 0 0 Fixed costs traceable to product lines Product responsibility margin 0.00% $ 0.00% $ 0.00% 0 0 0 Common fixed costs 0.00 % Income from operations 0