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.)

HEPRAS INC. Responsibility Income Statement For the Current Month Ethernet Switches Line Entire Company Routers Line Percent of Sales Percent of Sales Percent of Sales Dollars Dollars Dollars Sales Variable costs Contribution margin Fixed costs traceable to product lines Product responsibility margin Common fixed costs Income from operations 0% 0%