Reference no: EM133009023

Question - Toys Corp. has provided the following relating to the most recent month of operations, for their two main products, bulldozers and diggers. the company sold 10,500 bulldozers and 14,000 diggers. bulldozers sell for $12 and diggers for $14. Other data relating to the product line is below:

variable expenses as % of sales: bulldozers- 35%; diggers- 60%

traceable fixed costs: bulldozes- 55,000; diggers- 65,500

In addition to the above costs, the company spent 8K on advertising campaign which advertised both product lines. the company also has corporate fixed costs of 12,500 per month. these corporate fixed costs will be incurred regardles of the product lines sold.

Required -

-Compute the segment margin for the diggers product line.

-Compute the contribution margin for the bulldozers product line.