Instructions Amount Descriptions Segmented Income Statement Drop Dystem B Replace System with C instructions AudioMart is a retailer of radios, stereos, and televisions. The store cares two portable sound systems that have radios, tape players, and speakers System A, of slightly higher quality than System B costs $20 more with rare captions the store as sells a headset when a system is sold. The headset can be used with ether system. Varable-costing income statements for the three product follow Bystem A Dyslem B Headse $44.800 $32.700 $8,400 Less Vanuate expenses 20.500 25,700 2.700 Contribution margin $24.300 $7,000 $5,700 Le costs 9.000 18.100 2.500 Operating income cas) $14.500 $11.100) $3,200 This includes common fixed coals totaling $18,100, allocated to each product in proportionen The owner of the store is concemed about the proft performance of System B and is considering dropping it it the product is dropped, sales of System A will increase by 32%, and sales c the nearest whole number Required 1. Prepare segmented income statements for the tree products using a better to 2. CONCEPTUAL CONNECTION Prape segmented income statements for System A and the headsets assuming that System a dropped Should be dropped 3. CONCEPTUAL CONNECTION Suppose that a third system, System C with a similar quality to System B could be acquired Assume that with C the sales of A would remain unchanget however C would produce only 80% of the venues of and sales of the headsets would drop by 10% The cartreudon margin ratio of C is 50% and directed costs would be identical to those of B. Should System be dropped and Check My Work more Check My Work uses remaining readouts will drop by 25% Round all answer to Previous , Keep or Drop Instructions Amount Descriptions Segmented Income Statement Drop System B Replace System B with C Segmented Income Statement 1. Prepare segmented income statements for the three products later to the list of Amount Descriptions for the exact wording of text tems within your income statement Round your answers to the nearest dolar input expenses as positive Sales 3 Less: Variable expenses Contribution margin 3 Less: Direct fixed cost Operating income AudoMart Segmented Income Statement System A, System B, and Headset System A System Total I Instructions Drop System B Amount Descriptions Segmented Income Statement Drop System B Replace System B with C 218) Prepare segmented income statements for System A and the heads assuming that System is dipped Rater to the st of Amount Descriptions for the exact wording of text them within your income statement. Round your answers the nearest dotar put expenses as positive numbers (Note: Be sure to complete 2b) below the statement 20) Should system B be dropped? AudioMart Segmented Income Statement System A and Headset Syen A Heacher mct Assignment: Chi KSHEETA H Book Keep or Drop structions Amount Descriptions Segmented income Statement Drop System Replace System B with C Replace System B with C . By A Bytom Ca Se She dropped and placed with Sy Check My Work more Check My Work Sp Previous Next>>