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] Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results. Routers Switches
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Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results.
Routers | Switches | ||||||
Sales | $ | 900,000 | $ | 300,000 | |||
Variable costs (as a percentage of sales) | 40 | % | 60 | % | |||
Traceable fixed costs | $ | 200,000 | $ | 100,000 | |||
In addition, fixed costs common to both product lines amounted to $120,000.
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 your percentage answers to the nearest whole percent.)
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