Quiet Feet Inc. produces three different types of shoes. Complete the below contribution margin income statement...

Transcribed Image Text:

Quiet Feet Inc. produces three different types of shoes. Complete the below contribution margin income statement for each product line. Allocate total fixed costs to each shoe type based on units as a percent of total units (i.e. use units sold as the cost driver). Sales (units) Price Sales revenue Variable costs Contribution margin Fixed costs (all allocated) Operating income Boots Sneakers $ 6,000 50.00 15,000 $ 25.00 $ 180,000 What is operating income if Quiet Feet Inc. stopped selling Boots? What is operating income if Quiet Feet Inc. stopped selling Sneakers? What is operating income if Quiet Feet Inc. stopped selling Sandals? What product line (if any) should Quiet Feet Inc. stop producing? 315,000 Sandals 4,000 5.00 Total Relevant? 25,000 n/a 24,000 519,000 n/a 106,700 n/a n/a 772. n/a n/a n/a Boots n/a 222 n/a n/a n/a Sneakers Quiet Feet Inc. produces three different types of shoes. Complete the below contribution margin income statement for each product line. Allocate total fixed costs to each shoe type based on units as a percent of total units (i.e. use units sold as the cost driver). Sales (units) Price Sales revenue Variable costs Contribution margin Fixed costs (all allocated) Operating income Boots Sneakers $ 6,000 50.00 15,000 $ 25.00 $ 180,000 What is operating income if Quiet Feet Inc. stopped selling Boots? What is operating income if Quiet Feet Inc. stopped selling Sneakers? What is operating income if Quiet Feet Inc. stopped selling Sandals? What product line (if any) should Quiet Feet Inc. stop producing? 315,000 Sandals 4,000 5.00 Total Relevant? 25,000 n/a 24,000 519,000 n/a 106,700 n/a n/a 772. n/a n/a n/a Boots n/a 222 n/a n/a n/a Sneakers