Segmented Income Statements, Product-Line Analysis Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Aland totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and $142,500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follows: Selling price per appliance Variable expenses per appliance Required: Blenders $24 Coffee Makers $29 10 27 1. Prepare segmented income statements. Separate direct and common fixed costs. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Sales Blenders Coffee Makers Total 2. What would the effect be on Alard's profit if the coffee maker line is dropped? The blender Ine? If the coffee maker line is dropped, profits will the segment margin. If the blender line is dropped, profits wil 3. What would the effect be on firm profits if an additional 10,000 blenders could be produced (using existing capacity) and sold for $21.50 on a special-order basis? Existing sales would be unaffected by the special order. Enter all amounts as positive numbers.