tory during Year 4? EXERCISE 6-4 Basic Segmented Income Statement [104] Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: Selling price per pack . $8.00 $25.00 Variable expenses per pack . . . . . $3.20 $17.50 Traceable fixed expenses per year . .. . . $138,000 $45,000 Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 37,500 CD packs and 18,000 DVD packs. have Required: Prepare a contribution format income statement for the year segmented by product lines. d EXERCISE 6-5 Deducing Changes in Inventories [LO3] Ferguson Products Inc., a manufacturer, reported $130 million in sales and a loss of $25 million in its absorption costing income statement provided to shareholders. According to a CVP analysis prepared for management, the company's break-even point is $120 million in sales. Required: Assuming that the CVP analysis is correct, is it likely that the company's inventory level increased, fed decreased, or remained unchanged during the year? Explain. EXERCISE 6-6 Inferring Costing Method; Unit Product Cost [LO1] Amcor, Inc., incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials ... $10 Direct labor . . . . . $5 Variable manufacturing overhead . ..... . $2 Variable selling and administrative expenses . . . . ... $4 Fixed costs per year: Fixed manufacturing overhead . . $90,000 Fixed selling and administrative expenses . ........ $300,000