Floppy Disk Inc. produces and sells recordable DVD and Blu-Ray packs. Revenue and cost information relating to the products follow:
Product
|
|
DVD
|
Blu-Ray
|
|
Selling price per pack
|
$8.00
|
$20.00
|
|
Variable expenses per pack
|
$3.20
|
$10.50
|
|
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 DVD packs and 18,000 Blu-Ray packs.
Required:
- Prepare a contribution-format income statement for the year, segmented by product lines.