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Hankook company is producing and marketing two types of tires: T31 and T31. The following data were gathered on activities last month: T31 12,000 40
Hankook company is producing and marketing two types of tires: T31 and T31. The following data were gathered on activities last month: T31 12,000 40 18 Details Sales in units Selling price per unit Variable production cost per unit Traceable fixed production cost Variable selling expense per unit Traceable fixed selling expenses Common fixed expenses (allocated) T32 10,000 80 48 120,000 12 30,000 30,000 100,000 20,000 40,000 Required: 1. Prepare segmented income statement in contribution format for the last month. 2. If Hankook has extra capacity to produce more 2,000 tires per month, what type of product (T31 or T32) do you recommend to utilize extra capacity in? show calculations to justify your
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