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			$	880,000
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 $210,000.

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%.)

ercentage answers to 2 decimal place. i.e. o.1234 should be considered as 12.34%.) HEPRAS INC Responsibility Income Statement For the Current Month Entire Company Routers Line Ethernet Switche Percent of Dollars Dollars Percent of Sales Dollars Perce Sales $ 1,440,000 Sales 100.00 % $ 560,000 100.001% $ 880,000 40.00 Variable costs 224,000 100.00 1% | $ 336,000 Contribution margin $ 1,440,000 60.00 % | $ 880,000 Fixed costs traceable to product lines Product responsibility margin 100.00 1% | $ 336,000 60.00 % | $ 880,000 $ 1,440,000 Common fixed costs Income from operations $ 1,440,000 100.00 %