ABC Inc. has two products: Pumpkin and Blueberry. Revenue and cost information for each of the product lines are as follows: Selling prices per unit, Pumpkin ($100) and Blueberry ($85); Variable cost per unit, Pumpkin ($40) and Blueberry ($35); Traceable Fixed expenses, Pumpkin ($120,000) and Blueberry ($90,000); Common Fixed expenses $50,000 each.
Last year the company sold 10,000 units of Pumpkin and 8,000 units of Blueberry. Calculate the total operating income for ABC and the segment margin for Pumpkin and Blueberry.
A. Operating Income for ABC:
B. Segment Margin for Pumpkin:
C. Segment Margin for Blueberry: