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Question:
Westerville Buckeye Company produces and sells two products. Cost and Revenue
information by product for the current year is as follows:
Product A Product B
Selling price per product $10 $20
Variable expenses per product 4 15
Traceable fixed expenses per year 110,000 35,000
Annual common fixed expenses for the company totals $100,000. In the year Westerville Buckeye sold 35,000 units of Product A and 20,000 units of Product B.
Create a contribution margin format income statement for the year by product and provide the segment margin for Product A and the segment margin for Product B.
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