Exercise 6-4 Basic Segmented Income Statement [LO4] Caltec, Inc., produces and s
ID: 2418537 • Letter: E
Question
Exercise 6-4 Basic Segmented Income Statement [LO4]
Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow:
Product
Common fixed expenses in the company total $96,000 annually. Last year the company produced and sold 36,000 CD packs and 21,500 DVD packs.
Prepare a contribution format income statement for the year segmented by product lines. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)
Product Line
Options to Select:
Traceable fixed expenses
Sales
Contribution Margin
Net Operating Income (loss)
Product line segment margin
Variable Expenses
Common fixed expenses not traceable to products
Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow:
Explanation / Answer
Particulars CD DVD Total $ $ $ Sales 288,000 666,500 954,500 Less: Variable Expenses -111,600 -215,000 -326,600 Contribution Margin 176,400 451,500 627,900 Less: Traceable fixed expenses -134,000 -48,000 -182,000 Product line segment margin 42,400 403,500 445,900 Less: Common fixed expenses -96,000 Net Operating Income 349,900