Skyler White, Inc. manufactures and sells two products: Jeeps and Cell Phones. The following information was extracted from the company's accounting records from last period.

	Jeeps	Cell Phones
Sales Revenue	$300,000	$275,000
Product Costs	$220,000	$150,000
Period Costs	$25,000	$30,000

The Jeep product line has the following breakout of product costs: Direct Materials of $60,000, Direct Labor of $30,000, and Manufacturing Overhead of $35,000. The remaining product costs are traceable fixed manufacturing overhead costs. The period costs of the Jeep line are made up of $15,000 of Sales Commissions (which is paid as a percentage of sales revenue), and $10,000 of arbitrarily allocated common fixed costs.

The Cell Phone line has a contribution margin percentage of 60%. Of the fixed costs in the Cell Phone line, $30,000 are traceable fixed costs and the remainder are arbitrarily allocated common fixed costs.

Which of the following statements is incorrect?

Question 9 options:

	Traceable costs for the Cell Phone line are $140,000.
	The Jeeps line performance should be analyzed based on a segment margin of $65,000.
	If the Cell Phone line was expected to achieve a segment margin of $150,000, management would be pleased with the performance of the division.
	The variable cost percentage of the Cell Phone line is 40%.
	The company's operating income for the period equals $150,000.