Hepras, Inc., has two product lines: routers and ethernet switches. During the current month, the two product lines reported the following results.
________________________________________________ Routers _____________ Switches
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900,000 . . . . . . . . . . . . . $300,000
Variable costs (as a percentage of sales) . . . . . . . . . . . . . . . . . 40% . . . . . . . . . . . . . . . . . . . 60%
Traceable fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000 . . . . . . . . . . . . . $100,000
In addition, fixed costs common to both product lines amounted to $120,000.
Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each product line?
Exercises 22.6, 22.7, and 22.8 are based on the following data.
Shown as follows is a segmented income statement for Drexel-Hall during the current month.

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Profit Centers Drexel-Hall Store 1 Store 2 Store 3 Dollars Dollars Dollars Dollars $1,800,000 100% $600,000 100% $600,000 100% $600,000 100% 1,080,000 60 372,000 62 378,000 63 330,000 55 $ 720,000 432,000 24 $228,000 38% $222,000 37% $270,000 45% Contribution margin Traceable fixed costs: controllable . .. . 40% 120,000 20 102,000 17 210,000 35 $ 288,000 16% $108,000 18% $120,000 20% $60,000 10% 180,000 10 48,000 8 66,000 11 66,000 (6,000) 11 $ 108,000 6% $60,000 10% $ 54,000 9% $ (1)% 36,000 2 Income from operations $ 72,000 4%