DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last month's accounting records: Debit Credit Sales Revenue $190,000 $180,000 Product Costs $144,000 $132,000 Period Costs $28,000 $26,400 Debit's product costs consists of $29,000 of traceable fixed costs. The remainder of its product costs are variable costs. Debit's period costs consist of sales commission that equal 10% of its sales revenue. The remainder of its allocated common fixed costs. Credit's contribution margin percentage is 45%. Of its fixed costs, $6,700 are traceable. The remainder of its fixed costs are allocated common fixed costs. Which of the following statements is incorrect? O A. If Debit was expected to generate a segment margin of $30,000, it fell short of management's expectations by $3,000. O B. Debit's total traceable costs equal $163,000. Oc. Credit's performance should be judged on a segment margin of $74,300. O D. The total common fixed costs are $35,700. O E The company's operating income for the period equals $39.600
DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last month's accounting records: Debit Credit Sales Revenue $190,000 $180,000 Product Costs $144,000 $132,000 Period Costs $28,000 $26,400 Debit's product costs consists of $29,000 of traceable fixed costs. The remainder of its product costs are variable costs. Debit's period costs consist of sales commission that equal 10% of its sales revenue. The remainder of its allocated common fixed costs. Credit's contribution margin percentage is 45%. Of its fixed costs, $6,700 are traceable. The remainder of its fixed costs are allocated common fixed costs. Which of the following statements is incorrect? O A. If Debit was expected to generate a segment margin of $30,000, it fell short of management's expectations by $3,000. O B. Debit's total traceable costs equal $163,000. Oc. Credit's performance should be judged on a segment margin of $74,300. O D. The total common fixed costs are $35,700. O E The company's operating income for the period equals $39.600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last month's accounting records:
Debit
Credit
Sales Revenue
$190,000 $180,000
Product Costs
$144,000 $132,000
Period Costs
$28,000
$26,400
Debit's product costs consists of $29,000 of traceable fixed costs. The remainder of its product costs are variable costs. Debit's period costs consist of sales commission that equal 10% of its sales revenue. The remainder of its period costs are
allocated common fixed costs.
Credit's contribution margin percentage is 45%. Of its fixed costs, $6,700 are traceable. The remainder of its fixed costs are allocated common fixed costs.
Which of the following statements is incorrect?
O A. If Debit was expected to generate a segment margin of $30,000, it fell short of management's expectations by $3,000.
B. Debit's total traceable costs equal $163,000.
C. Credit's performance should be judged on a segment margin of $74,300.
D. The total common fixed costs are $35,700.
O E. The company's operating income for the period equals $39,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cd2d99-516c-4b65-8e09-74f02c50df79%2F8342c091-a89b-415b-a6f2-7fd05cdcf3ed%2Fm2nefk_processed.png&w=3840&q=75)
Transcribed Image Text:DolCor, Inc. manufactures and sells two products: Debit and Credit. The following data were extracted from last month's accounting records:
Debit
Credit
Sales Revenue
$190,000 $180,000
Product Costs
$144,000 $132,000
Period Costs
$28,000
$26,400
Debit's product costs consists of $29,000 of traceable fixed costs. The remainder of its product costs are variable costs. Debit's period costs consist of sales commission that equal 10% of its sales revenue. The remainder of its period costs are
allocated common fixed costs.
Credit's contribution margin percentage is 45%. Of its fixed costs, $6,700 are traceable. The remainder of its fixed costs are allocated common fixed costs.
Which of the following statements is incorrect?
O A. If Debit was expected to generate a segment margin of $30,000, it fell short of management's expectations by $3,000.
B. Debit's total traceable costs equal $163,000.
C. Credit's performance should be judged on a segment margin of $74,300.
D. The total common fixed costs are $35,700.
O E. The company's operating income for the period equals $39,600
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