American sports corporation


The Winter Products Division of American Sports Corporation produces and markets two products for use in the snow: Sleds and Saucers. The following data were gathered on activities last month:


Sleds Saucers
  Sales in units
2,000    
9,200    
  Selling price per unit $ 50.30     $ 21.90    
  Variable production costs per unit $ 18.70     $ 4.80    
  Traceable fixed production costs $ 11,100     $ 32,500    
  Variable selling expenses per unit $ 1.60     $ 0.90    
  Traceable fixed selling expenses $ 1,600     $ 2,900    
  Allocated division administrative expenses $ 38,200     $ 71,600    

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Accounting Basics: American sports corporation
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