Answered step by step
Verified Expert Solution
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 | $ | 670,000 | $ | 710,000 | |||
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 $214,000.
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started