Question
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results. SalesRouters$570,000 Switches$800,000 Variable
Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results.
SalesRouters$570,000 Switches$800,000
Variable costs (as a percentage of sales)Routers 40% Switches 45%
Traceable fixed costs Routers $250,000Switches $125,000
In addition, fixed costs common to both product lines amounted to $221,000.
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%.)
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