Question
Floppy Disk Inc. produces and sells recordable DVD and Blu-Ray packs.Revenue and cost information relating to the products follow: Product DVD Blu-Ray Selling price per
Floppy Disk Inc. produces and sells recordable DVD and Blu-Ray packs.Revenue and cost information relating to the products follow:
Product
| DVD | Blu-Ray | |
| Selling price per pack | $8.00 | $20.00 |
| Variable expenses per pack | $3.20 | $10.50 |
| Traceable fixed expenses per year | $138,000 | $45,000 |
Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 37,500 DVD packs and 18,000 Blu-Ray packs.
Required:
- Prepare a contribution-format income statement for the year, segmented by product lines.
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Managerial Accounting
Authors: Carl Warren
14th Edition
1337516147, 978-1337270595
