Stam Co. produces and sells two products, BB and TT. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Income statements for each product follow.

Product BB Product TT Sales . .... $800,000 $800,000 Variable costs . ..... 560,000 100,000 Contribution margin . . . . .. 240,000 700,000 Fixed costs . . . 100,000 560,000 Income. . . . $140,000 $140,000