Alard Company produces blenders and coffee makers. During the past year, the company pro-duced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000,of which $184,000 can be avoided if the blenders are not produced and $142,500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follow:

Required:
1. Prepare segmented income statements. Separate direct and common fixed costs.
2. Whatwould the effectbeonAlard's profitifthecoffeemakerlineisdropped? Theblenderline?
3. What would the effect be on firm profits if an additional 10,000 blenders could be produced(using existing capacity) and sold for $21.50 on a special-order basis? Existing sales wouldbe unaffected by the special order.

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Blenders Coffee Makers Selling price per appliance Variable expenses per appliance $24 18 S29 27