Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 560,000 $ 910,000
Variable costs (as a percentage of sales) 40 % 45 %
Traceable fixed costs $ 250,000 $ 125,000

In addition, fixed costs common to both product lines amounted to $220,000.

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%.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit Of Treasury And Cash Management

Authors: Badr Bentalha

1st Edition

B0BM3R6WG7, 979-8363213779

More Books

Students also viewed these Accounting questions

Question

The company has fair promotion/advancement policies.

Answered: 1 week ago