Question:

Westerville Buckeye Company produces and sells two products. Cost and Revenue

information by product for the current year is as follows:

                                                                                                       Product A           Product B

Selling price per product                                                                  $10                     $20

Variable expenses per product                                                         4                         15

Traceable fixed expenses per year                                             110,000                 35,000

Annual common fixed expenses for the company totals $100,000. In the year Westerville Buckeye sold 35,000 units of Product A and 20,000 units of Product B.

Create a contribution margin format income statement for the year by product and provide the segment margin for Product A and the segment margin for Product B.