Problem 8-6 Ellie Manufacturing Company produces three products: A, B, and C. The income statement for 2011 is as follows: Sales $200,000 Less: Variable cost 127,000 Contribution margin $73,000 Less fixed cost: Manufacturing Selling and administrative $20,000 14,000 34,000 Operating income $39,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows: Sales Contribution margin ratio Direct fixed expenses of products A $60,000 35% $8.000 B $40,000 30% $5.000 с $100,000 40% $4.000
Problem 8-6 Ellie Manufacturing Company produces three products: A, B, and C. The income statement for 2011 is as follows: Sales $200,000 Less: Variable cost 127,000 Contribution margin $73,000 Less fixed cost: Manufacturing Selling and administrative $20,000 14,000 34,000 Operating income $39,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows: Sales Contribution margin ratio Direct fixed expenses of products A $60,000 35% $8.000 B $40,000 30% $5.000 с $100,000 40% $4.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Required:
Prepare income statements segmented by products. Enter all amounts as positive numbers.
Ellie Manufacturing Company
Income Statement
For the Year 2011
B
Total
с
Total
Transcribed Image Text:Problem 8-6
Ellie Manufacturing Company produces three products: A, B, and C. The income statement for 2011 is as follows:
Sales
$200,000
Less: Variable cost
127,000
Contribution margin
$73,000
Less fixed cost:
Manufacturing
Selling and administrative
34,000
$39,000
The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows:
Operating income
Sales
$20,000
14,000
Contribution margin ratio
Direct fixed expenses of products
A
$60,000
35%
$8,000
B
$40,000
30%
$5,000
с
$100,000
40%
$4,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education