A 68. Skyler White, Inc. manufactures and sells two products: Jeeps and Cell Phones. Thefollowing information was extracted from the company's accounting records fromlast period.Sales RevenueProduct CostsPeriod CostsJeeps$300,000$220,000$25,000Cell Phones$275,000$150,000$30,000The Jeep product line has the following breakout of product costs: Direct Materialsof $60,000, Direct Labor of $30,000, and Manufacturing Overhead of $35,000. Theremaining product costs are traceable fixed manufacturing overhead costs. Theperiod costs of the Jeep line are made up of $15,000 of Sales Commissions (which ispaid as a percentage of sales revenue), and $10,000 of arbitrarily allocated commonfixed costs.Product CuPeriod CostsThe Cell Phone line has a contribution margin percentage of 60%. Of the fixed costsin the Cell Phone line, $30,000 are traceable fixed costs and the remainder arearbitrarily allocated common fixed costs.Which of the following statements is incorrect?The company's operating income for the period equals $150,000.The variable cost percentage of the Cell Phone line is 40%.Traceable costs for the Cell Phone line are $140.000*PELVISUU$25,000$30,000The Jeep product line has the following breakout of product costs: Direct Materialsof $60,000, Direct Labor of $30,000, and Manufacturing Overhead of $35,000. Theremaining product costs are traceable fixed manufacturing overhead costs! Theperiod costs of the Jeep line ar made up of $15,000 of Sales Commissions (which ispaid as a percentage of sales revenue), and $10,000 of arbitrarily allocated commonfixed costs.The Cell Phone line has a contribution margin percentage of 60%. Of the fixed costsin the Cell Phone line, $30,000 are traceable fixed costs and the remainder arearbitrarily allocated common fixed costs.Which of the following statements is incorrect?The company's operating income for the period equals $150,000.The variable cost percentage of the Cell Phone line is 40%.Traceable costs for the Cell Phone line are $140,000.If the Cell Phone line was expected to achieve a segment margin of $150,000,management would be pleased with the performance of the division.The Jeeps line performance should be analyzed based on a segment margin of$65,000.

The segmental income statement is prepared to find the individual performance of the segment that…

Skyler White, Inc. manufactures and sells two products: Jeeps and Cell Phones. The following information was extracted from the company's accounting records from last period. Sales Revenue Product Costs Period Costs Jeeps $300,000 $220,000 $25,000 Cell Phones $275,000 $150,000 $30,000 The Jeep product line has the following breakout of product costs: Direct Materials of $60,000, Direct Labor of $30,000, and Manufacturing Overhead of $35,000. The remaining product costs are traceable fixed manufacturing overhead costs. The period costs of the Jeep line are made up of $15,000 of Sales Commissions (which is paid as a percentage of sales revenue), and $10,000 of arbitrarily allocated common fixed costs. The Cell Phone line has a contribution margin percentage of 60%. Of the fixed costs in the Cell Phone line, $30,000 are traceable fixed costs and the remainder are arbitrarily allocated common fixed costs. Which of the following statements is incorrect? The company's operating income for the period equals $150,000. The variable cost percentage of the Cell Phone line is 40%. Traceable costs for the Cell Phones