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A company has two product lines, shoes and hats. Costand revenue for each line for the current month follows:

Product lines

Shoes hats

sales...................................... $ 800,000 $450,000

variable costs as a percentage ossales........ 55% 28%

fixed costs traceable to productlines......... $200,000 $ 250,000

The company incurs monthly fixed costs of $ 100,000 common to both product lines. Prepare the company's responsibilty income statement for the current month. Report the repsonsiblity margin for each product line and income from operations for the company as a whole, including all dollars amounts as percentage of sales.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797554

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