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Product line decision. The following segmented annual income statement is for storage devices, inc: Product lines 1 Gig 2 Gig Sales revenue 1,000,000 4,000,000 Variable
Product line decision. The following segmented annual income statement is for storage devices, inc: Product lines 1 Gig 2 Gig Sales revenue 1,000,000 4,000,000 Variable costs 600,000 2,500,000 Cntribtion margin 400,000 1,500,000 Direct fixed costs 300,000 800,000 Allocated fixed costs (A) (B) Profit (loss) (D) (E) 4 Gig total 5,000,000 10,000,000 3,500,000 6,600,000 1,500,000 3,400,000 1,000,000 2,100,000 (C) 1,100,000 (F) 200,000 For items A, B and C in the chart above, assign Allocated fixed costs to reach Product line based on sales revenue for each product line as a proportion of total sales revenue. For example, the 1 Gig Product will be assigned 10 percent of Allocated fixed costs ( = $1,000,000 in 1 Gig sales revenue $10,000,000 total sales revenue), or $110,000 (=$1,100,000 total Allocated fixed costs x 10 percent). For items D, E and F in the chart above, calculate the profit or loss for each product line
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