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Please help me with my wrong answers, I can not get to the right answer. Thank you so much! Hepras, Inc., has two product lines:
Please help me with my wrong answers, I can not get to the right answer. Thank you so much!
Hepras, Inc., has two product lines: routers and ethernet Switches. During the current month, the two product lines reported the following results. Sales Variable costs (as a percentage of sales) Traceable fixed costs Routers $ 600,000 40% $ 250,000 Switches $ 970,000 45% $ 125,000 In addition, fixed costs common to both product lines amounted to $222,000. 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%.) Answer is complete but not entirely correct. Ethernet Switches Line Dollars Percent of Sales 100.00% Sales Variable costs HEPRAS INC. Responsibility Income Statement For the Current Month Entire Company Routers Line Dollars Percent of Sales Dollars Percent of Sales $ 1,570,000 100.00 % $ 600,000 100.00% 360,000 X 40.00 X 360,000 40.00 $ 1,210,000 60.00 % $ 240,000 60.00 % 375,000 23.88 X 250,000 41.66 X $ 835,000 36.12 % $(10,000) 18.34 % 222,000 14.14 $ 613,000 21.98 % $ 970,000 533,500 45.00 Contribution margin $ 436,500 55,00 % 125,000 $ 311,500 12.88 X 42.12 % Fixed costs traceable to product lines Product responsibility margin Common fixed costs Income from operationsStep by Step Solution
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