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Sales Knitline Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. Sweaters Jackets $210,000 $450,000

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Sales Knitline Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. Sweaters Jackets $210,000 $450,000 Variable cost of goods sold 145,000 196,000 Direct fixed overhead 25,000 47,000 A sales commission of 5% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $20,000 for the sweater line and $50,000 for the jacket line. Common fixed overhead for the factory was estimated to be 545,000. Common selling and administrative expense was estimated to be $15,000. Required: Prepare a segmented Income statement for Knitline for the coming year, using variable costing. Enter all amounts as positive numbers Knitline Inc. Segmented Income Statement For the Coming Year Total Sweaters Jackets Sales Less variable expenses: Variable cost of goods sold . Variable selling expense 10 Contribution margin Segment margin Less common fixed expenses: Common fixed overhead 0 00 Common selling and administrative Operating income Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 2,520 hours per year, Product Reno has a unit contribution margin of $120 and requires five hours of painting department time. Product Tahoe has a unit contribution margin of $78 and requires three hours of painting department time. There are no other constraints. Required: 1. What is the contribution margin per hour of painting department time for each product? Contribution Margin Reno Tahoe 2. What is the optimal mix of products? If an amount is zero, entero" Optimal Mix Reno units Tahoe units 3. What is the total contribution margin cared for the optimal mi

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