Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the

Question:

Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow:

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.
Required:
Prepare a contribution format income statement for the year segmented by productlines.

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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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Question Posted: Mar 31, 2012 01:29 AM

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Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the

Question:

Product CD $8.00 $25.00 DVD Selling price per pack Variable expenses per pack. Traceable fixed expenses per year $3.20 $17.50 $138,000 $45,000

Step by Step Answer:

Total CD DVD Sales 750000 300000 450000 Variable expenses 435000 120000 315000 Contributio...View the full answer

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