PT Franklin is a company that produces clone iPhones. The 2 products produced are the iPhone 11 Pro Max and iPhone 12 Pro Max. The iPhone 11 Pro Max sells for $ 300, while the iPhone 12 Pro Max sells for $ 325. The following is the income statement for the period of December 31, 2020 according to variable cost calculations for the two products with sales information for the 11 Pro Max of 20,000 units and the iPhone 12 Pro Max of 25,000 units.

Required: a. Compile a segmented income statement for the two products! (5%) b. Prepare an income statement if the iPhone 12 Pro Max product is discontinued! (5%) c. Should production of the iPhone 12 Pro Max be stopped? give reasons and prove it with your calculation! (5%) d. If the company stops selling the iPhone 12 Pro Max and then has an impact on the iPhone 11 Pro Max sales increase of 25%, compile an income statement! (10%) e. Should the production of the iPhone 12 Pro Max be stopped when referring to point d, give reasons! (5%)

Revenues Variable Expense Contribution Margin Fixed Expense Operating Income iPhone 11 Pro Max iPhone 12 Pro Max $6.000.000 $8.125.000 $3.850.000 $4.990.000 $2.150.000 $3.135.000 $1.500.000 $2.500.000 $650.000 $635.000