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Helen's Hen House is a wholesaler of chickens to farmers across the country. Helen sells three types of chickens to her customers. Black, Brown,
Helen's Hen House is a wholesaler of chickens to farmers across the country. Helen sells three types of chickens to her customers. Black, Brown, and White chickens. Below is a traditional departmental income statement for the quarter ended 10/31/2022 Black Brown White Sales Revenue $30,000 $50,000 $25,000 (Cost of Goods Sold) 6.000) (40,000) (20,000) Gross Profit 24,000 10,000 5,000 (Operating Expenses) (8.500) (5.500) (8.000) Operating Income 15,500 4,500 (3,000) 45% of the cost of goods sold for reach product line is variable. The remaining cost of goods sold consists of traceable fixed costs. Operating expenses include $11,500 of common fixed costs that have been arbitrarily allocated to the various product lines as follows $3,000 to Black Chickens, $4,500 to Brown Chickens, and $4,000 to White Chickens. The remaining operating expenses consist of variable costs. Which of the following statements is correct with regard to the above information? OA. Total traceable costs for the Black Chickens line are $14,500 OB. The contribution margin percentage for the Brown Chickens line is 62% OC. The company's common fixed costs would decrease by $3,000 if the Black Chickens line was discontinued OD. Operating income using the segmented margin income statement would be $28,500 OE. If the White Chicken line was dropped the company's operating income would increase by $3,000
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