SCG, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: Product CD DVD P 25.00 P 17.50 P45,000 P. 8.00 Selling price per pack Variable expenses per pack Traceable fixed expenses per year P. 3.20 P138,000 Common fixed expenses in the company total P105,000 annually. Last year the company produced and sold 37,500 CD packs and 18,000 DVD packs. Required: Prepare a contribution format income statement for the year segmented by product lines.
SCG, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: Product CD DVD P 25.00 P 17.50 P45,000 P. 8.00 Selling price per pack Variable expenses per pack Traceable fixed expenses per year P. 3.20 P138,000 Common fixed expenses in the company total P105,000 annually. Last year the company produced and sold 37,500 CD packs and 18,000 DVD packs. Required: Prepare a contribution format income statement for the year segmented by product lines.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Problem 3 (Basic Segmented Income Statement)
SCG, Inc., produces and sells recordable CD and DVD packs. Revenue and cost
information relating to the products follow:
Product
CD
DVD
P 25.00
P 17.50
P45,000
P.
8.00
Selling price per pack
Variable expenses per pack
Traceable fixed expenses per year
P.
3.20
P138,000
Common fixed expenses in the company total P105,000 annually. Last year the
company produced and sold 37,500 CD packs and 18,000 DVD packs.
Required: Prepare a contribution format income statement for the year segmented
by product lines.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff99409fc-2263-4da8-bb3a-2fa3462a8e22%2Fdb1f0525-4c96-4ed7-940b-534e46146bca%2Fi76zvt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3 (Basic Segmented Income Statement)
SCG, Inc., produces and sells recordable CD and DVD packs. Revenue and cost
information relating to the products follow:
Product
CD
DVD
P 25.00
P 17.50
P45,000
P.
8.00
Selling price per pack
Variable expenses per pack
Traceable fixed expenses per year
P.
3.20
P138,000
Common fixed expenses in the company total P105,000 annually. Last year the
company produced and sold 37,500 CD packs and 18,000 DVD packs.
Required: Prepare a contribution format income statement for the year segmented
by product lines.
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