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Vogel Company produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: 12 1,000 BV19 Selling
Vogel Company produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: 12 1,000 BV19 Selling price per unit Contribution margin per unit $24 8 HV41 5:48 Units sold per month 2,000 Total contribution margin $16,000 Direct fixed expenses 7,200 Segment margin Allocated company fixed expenses $8,800 3,333 Operating incone (loss)) $ 5,467 $ 4,633 Required: $ 12,000 5,700 $6,300 1,667 MV12 $ 20 4 3,000 $ 12,000 8,100 $3,900 5,000 $ (1,100) a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each model. d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. Reg A Reg Reg C Req D and E Calculate the effect on total company net income if the MV12 model were discontinued. The net income would > Check my work
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