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Shaw Company produces and sells two packaged productsZ-Bikes and y Bikes. Revenue and cost information relating to the products follow: Product Z Bikes Y Bikes

  1. Shaw Company produces and sells two packaged productsZ-Bikes and y Bikes. Revenue and cost information relating to the products follow:

Product

Z Bikes

Y Bikes

Selling price per unit

$

175.00

$

200.00

Variable expenses per unit

$

85.00

$

105.00

Traceable fixed expenses per year

$

200,000

$

75.00

Common fixed expenses in the company total $110 annually. Last year the company produced and sold 50,000 units of Z Bikes and 30,000 units of Y Bikes.

Required:

Prepare a contribution format income statement segmented by product lines.

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