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
	CD		DVD
Selling price per pack	$	8.00	$	31.00
Variable expenses per pack	$	3.10	$	10.00
Traceable fixed expenses per year	$	134,000	$	48,000

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.

Required:

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
	Total	CD	DVD

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