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Question Content Area Ellie Manufacturing Company produces three products: A, B, and C. The income statement for the most recent year is as follows: Sales
Question Content Area
Ellie Manufacturing Company produces three products: A, B, and C. The income statement for the most recent year is as follows:
Sales | $200,000 | ||
Less: Variable cost | 127,000 | ||
Contribution margin | $73,000 | ||
Less fixed cost: | |||
Manufacturing | $20,000 | ||
Selling and administrative | 14,000 | 34,000 | |
Operating income | $39,000 |
The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows:
A | B | C | |
Sales | $60,000 | $40,000 | $100,000 |
Contribution margin ratio | 35% | 30% | 40% |
Direct fixed expenses of products | $8,000 | $5,000 | $4,000 |
Required:
Prepare income statements segmented by products. Include a column for the entire firm in the statement.
A | B | C | Total | |
Sales | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
Less: Variable expenses | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
Contribution margin | $fill in the blank 9 | $fill in the blank 10 | $fill in the blank 11 | $fill in the blank 12 |
Less: Direct fixed expenses | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 |
Product margin | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 | $fill in the blank 20 |
Less: Common expenses | fill in the blank 21 | |||
$fill in the blank 22 |
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