Question
The following segmented annual income statement is for Quality Bikes LLC. If allocated fixed costs are based on sales revenue for each product line as
The following segmented annual income statement is for Quality Bikes LLC.
If allocated fixed costs are based on sales revenue for each product line as a proportion of total sales revenue, what is the amount of allocated fixed costs for the Teen product? Use the drop down menu within the table below.
$45,000
$13,500
$54,000
Product Lines
| Youth | Teen | Adult | Total | |
| Sales revenue | $75,000 | $300,000 | $375,000 | $750,000 |
| Variable costs | 45,000 | 150,000 | 255,000 | 450,000 |
| Contribution margin | $30,000 | $150,000 | $120,000 | $300,000 |
| Direct fixed costs | 12,000 | 18,000 | 27,000 | 57,000 |
| Allocated fixed costs | ? | $ ? | ? | 135,000 |
| Profit (loss) | $ ? | $ ? | $ ? | $ ? |
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Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice
Authors: Mcgraw-Hill
5th Edition
0070099995, 978-0070099999
