Question - 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 $ 25.00
Variable expenses per pack $ 3.20 $ 17.50
Traceable fixed expenses per year $ 138,000 $ 45,000
Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 37,500 CD packs and 18,000 DVD packs.
Required: Prepare a contribution format income statement for the year segmented by product lines.