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Question - Meghan Markel's Company sells two products, Standard and Deluxe. Data for activity during January are as follows:
Standard
Deluxe
Sales
$100,000
$120,000
Contribution margin
35%
30%
Traceable fixed costs
$15,000
$25,000
Prepare a Segment Margin income statement. Common fixed costs total $25,000 & are allocated one-half to Standard and one-half to Deluxe Standard.
Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable)
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