Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results.

RoutersSwitches

Sales$900,000$300,000

Variable cost (percentage of sales)40%60%

Taxable fixed costs200,000100,000

In addition, fixed costs common to both product lines amounted to $120,000.

Required:

What will be the 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.)

Responsibility Income Statement

Entire company Routers Line Ethernet Line

Dollar ,% of salesDollar,% of saleDollar,% sale

a.

b.

c.

d.

e.

f.

g.